Business News
Buyout team acquires Wyndeham
Tuesday 09. December 2008 - Wyndeham Press Group Limited has been acquired from its Icelandic shareholders by Walstead Investments Limited. The transaction returns a significant player in the UK print market back to British ownership. Paul Utting will remain as chief executive of Wyndeham.
Walstead, a company specially formed to acquire Wyndeham, is backed by Leumi ABL, the asset-based lending subsidiary of Bank Leumi (UK) plc. Walsteads shareholders are investors Richard Fookes, Stephen Hargrave and Mark Scanlon, together with Paul Utting.
The transaction provides new working capital facilities and will result in a significant reduction in the groups indebtedness. The refinancing package greatly improves the financial position of all seven of Wyndehams operating subsidiaries.
Ongoing financial support from Leumi ABL and Walstead is contingent on the Group completing a restructuring of Wyndeham Heron, its main web offset printing operation, which is expected to be finalized early in 2009. Consequently, the Group is entering into a consultation process with the workforce at this site with a proposal to make 163 redundancies and a change to employee terms and conditions. The planned restructuring involves the decommissioning of certain press and bindery capacity following the recent loss of the Future Publishing contract, the closure of Haymarkets Eve magazine, and the ongoing downturn in the sector.
Paul Utting said: “We are very pleased that an agreement has been reached between Walstead and Landsbanki and are delighted to have the support of Leumi ABL. The funding has been provided on the basis that we are able to deliver a greatly improved performance in our web offset businesses, notably at Wyndeham Heron in Maldon, Essex. Heron is loss-making and its performance has been deteriorating in recent months as a result of overcapacity, increasing input expenditures and uncompetitive labour costs. When this situation is resolved we are confident that having already removed the uncertainty around the Groups ownership and debt position, we will be able to provide a more secure future for Wyndehams customers, employees and suppliers.”