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SME Finance Partners advises on MBO at Riva (UK) Ltd

11th May 2023

Riva UK Ltd, the Wrexham based customized textile manufacturer, has successfully completed a management buy-out in a deal advised on by SME Finance Partners, funded by the Development Bank of Wales.

Founded over 30 years ago, and run by Rita & Carl Bird, Riva has grown into a leading supplier of engineered textiles into the automotive and healthcare sectors, employing 50 people. The MBO sees a safe transition of the business from Rita & Carl, with Operations Manager Joe Quinlan stepping up to become Managing Director and majority shareholder, with DBW investing a combination of debt and equity for a minority stake in the business.

Joe said “Carl & Rita have worked tirelessly to build the business to where it is today, and I’m looking forward to taking the mantle and building on the success they have made to date. We are supported by a very loyal and hardworking team and I’m excited about the opportunity this presents.”

“I’m extremely grateful to the Development Bank of Wales for their support in getting the MBO completed. Their insight and expertise proved essential in making this happen for me and the team at Riva. I’d never been through a transaction like this before so I’m grateful for their input and the help from Chris Thomas at SME Finance Partners who was by my side every step of the way”

Senior Investment Executive Scott Hughes and Investment Executive Chris Hayward structured the investment by DBW.

Scott said: “We’re very pleased to support Joe with the acquisition of Riva. Joe has been a key part of the businesses success over the last few years. This business delivers unrivalled product quality and has identified new opportunities which will provide further growth and create additional jobs moving forward.”

Chris Thomas, co-founder of SME Finance Partners advised the Management Team throughout, working closely with Joe, preparing financial projections, guiding the business through financial due diligence and securing the funding for the deal from DBW. Commenting on the deal, Chris said “I’m delighted for Joe and pleased to have helped him realise his ambition of buying the business that he’s worked so hard in for the last six years. This was a good outcome for all stakeholders, allowing Joe to drive the business forward and enabling Rita & Carl to enjoy more time with their family. DBW were great to deal with, and Scott & Chris put a huge amount of effort into successfully completing this deal”.

Funding for the buyout came from the Wales Management Succession Fund and the Wales Flexible Investment Fund. Geldards acted for DBW, with Betsan Powell from JCP Solicitors provided Legal support for Management.

The Riva UK MBO, is the latest MBO that SME Finance Partners have advised on, following the successful completion of similar transactions with Reel Label Solutions and Hornbill Engineering.