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Endless Refinances Vasanta Group

By Paperstone on July 21, 2009 in Office Supplies, Office Supplies Industry News

Vasanta Group, the parent company behind some of the largest office suppliers in the UK, has been saved from insolvency by a combined private equity and bank-backed takeover. Private equity group Endless provided £22 million while banks including Royal Bank of Scotland, Bank of Ireland and Allied Irish Banks, agreed to swap 75% of Vasanta’s debt for equity in the business. Endless, the "turnaround" specialist, will take a 71% stake in the business, with 29% held by the key banks in Vasanta’s lending syndicate as well as providing £8m in fresh funds. The refinancing also secures the future of some 1,500 jobs. The 500m-turnover company is one of Sheffield’s largest private employers.

Vasanta’s brands – also preserved by the deal – include Vow, Supplies Team and ISA Retail. Garry Wilson, managing partner of Leeds-based Endless, explained Vasanta’s recent difficulties in the context of the combined effects of recession and the credit crunch.

“It is a well run, profitable business which was coping with the economic downturn,” he said. “But then credit insurers withdrew cover which immediately caused a cash outflow from the group of over £30m.”


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