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Legal & General Ventures (“LGV”) announces the management buyout of Kingfield Heath, a leading business supplies wholesaler operating across the UK and Ireland, for £85 million, including assumed debt.

Kingfield Heath is a wholesale distributor servicing a broad range of business customers including office supplies dealers and resellers throughout the UK and the Republic of Ireland. The company operates from nine warehouses, including a state of the art central warehouse at Magna Park, near Leicester, and is supported by a Head Office in Sheffield.

LGV is backing the current management team, led by Chief Executive Alan Barclay in a buyout from its current shareholders, which include interests of the Kaye family and 3i Group plc. Richard Martin, formerly finance director of The Stationery Office will join the business as Chairman.

Through its Corporate & Structured Finance Team, the company’s existing bank, The Royal Bank of Scotland plc, has agreed to provide appropriate facilities to fund the acquisition and support for the future development of the business.

Commenting on the investment, Michael Mowlem, Director of LGV, said:

“We are delighted to be backing Kingfield Heath’s management through the next stage of the business’ development. Kingfield Heath has refined its operating model over a number of years following the merger of Kingfield and John Heath and we are keen to continue its success in the growing office supplies sector.”

Commenting on the acquisition, Alan Barclay, Chief Executive of Kingfield Heath said:

“We are very pleased to welcome LGV as the new major shareholder in Kingfield Heath. With their support we will continue to grow and develop our service offering to our customers and suppliers. We are confident that the business will thrive under LGV’s ownership and that the benefits will be felt by all of our customers, suppliers and staff.”

David Leonard, outgoing Chairman of Kingfield Heath, added:

“The shareholders have worked with the management team to help steer the company’s growth strategy and have supported the business through four rounds of investment. The company has grown from a small regional wholesaler to a high quality and profitable business operating on a truly national scale. It is now well placed in the market sector to secure continued growth and expand its position in the UK office supply product markets.”

The investment in Kingfield Heath continues LGV’s focus on its core areas of sector expertise. In the services sector, LGV’s existing investments include LGC, Hayley Conference Centres and Craegmoor Healthcare.