Gambit advises on the MBO of Shropshire Leisure Group Limited

The Birmingham team from Gambit Corporate Finance LLP has advised on a multi-million pound investment from Rcapital for the management buy-out of Shropshire Leisure Group from the RBS equity holding vehicle, West Register.  The deal was in support of the management team of Derrick and Nick Dulson who originally established the business in 1998.   The transaction is the second significant leisure deal the Gambit team has completed in almost as many months, following the management buy-out of Bluestone Resorts Limited in July.

Rcapital’s investment is part of a long-term plan to expand and develop the business which currently employs 276 people.

Shropshire Leisure Group, which is based near Oswestry, Shropshire comprises:

Lion Quays Waterside Resort, an 82 bedroom 4-star hotel, a 5-star spa and country club, a selection of restaurants and wedding and conference facilities;

Lord Moreton, a large family restaurant and pub with an  adjoining 45 bedroom 3-star motel; and

Moreton Park, a 10 hectare garden centre.

The business was established in the 1960s by Derrick Dulson who started building residential houses in the Shropshire area. Derrick and his family soon progressed into developing and building retirement complexes and eventually went on to build the Moreton Park complex in 1998 and the Lion Quays Waterside Resort in 2000.

Nick Dulson, Director of Shropshire Leisure Group Limited, commented “We were very pleased with the outcome and were extremely impressed by the commerciality, level of support and assistance received from the entire Gambit team throughout all aspects of the transaction.”

Adrian Jones, Partner, commented, “To secure private equity investment to refinance a UK mainstream bank’s lending is in many ways ironic and unfortunately symptomatic of the lending environment at present.  Rcapital’s skill set will compliment that of the management team and I am sure this business will now flourish under its new ownership and build on what is already a successful and profitable business.”

Andrew Charter, a Director with Gambit, added “Shropshire Leisure Group comprises a number of extremely high quality leisure facilities run by an impressive management team.  These factors made it a very attractive investment opportunity for Rcapital.  In addition, our experience of the leisure sector was an important factor in ensuring the transaction was completed with minimal management distraction whilst foreseeing and addressing potential issues before they arose.”

Gambit were introduced to the management of SLG by Shoesmiths Chartered Accountants in Edgbaston, Birmingham

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