The senior management team of an established communications agency based in Chepstow have combined their own capital with an undisclosed six-figure mezzanine investment from Development Bank of Wales to buy the business.
New owners, Vikki Byrne, Lydia Owen and Mike Dyson started preparing for the buy-out 2 years ago, taking more responsibility for the day-to-day running of On Screen Productions (OSP) and its life sciences and healthcare division OSP Healthcare, when existing owners, Richard Cobourne and Alison King announced their retirement plans. They then went on to engage local advisers, KTS Owens Thomas, early in 2014.
Having worked for OSP for over 10 years, the team of 3 were keen to expand the agency and win new business.
Explaining why the new management team undertook the MBO, Mike Dyson said:
“OSP was originally a corporate video production company set up in 1993 and, since then, it’s grown into a full-service communications agency. Having worked for OSP for many years, we saw this an a unique opportunity to buy into a busness to which all three of us have a deep-rooted commitment.
“We used our own finance as well as a loan from Development Bank of Wales to fund the purchase and Alun Thomas ensured that we made best use of our personal funds when structuring the deal. We now have the flexibility we need to expand the business by capitalising on OSP’s proven business model.”
Staffed by an experienced team with a wide range of advertising, public relations, marketing, medical education, event management, digital production and graphic design expertise, OSP helps ambitious health and life sciences businesses to launch and market their services.
Commenting on the Development Bank of Wales’ investment in OSP Healthcare, Senior Investment Executive, Alun Thomas said:
“Lydia, Vikki and Mike started preparing early for their buy-out to make sure they fully understood all aspects of the business and were able to plan effectively for a seamless transition. I’m also pleased that Alison King is staying on temporarily to support the new management team.
“Planning ahead also meant they could explore potential funding options. OSP is one of the many successful service-sector businesses Development Bank of Wales has backed and while providing suitable financial security can often be challenging for these businesses, we can consider a range of factors when structuring our investments.”
For more information contact [email protected]