Rental firm Presteigne Broadcast Hire has completed a £5m management buyout (MBO) from media services company Avesco Group.
Presteigne said the deal would allow for a “substantial investment programme” that it hopes will establish it as “the industry’s largest mainstream broadcast hire company”.
The deal is worth £5m in cash. The company and assets have a net book value of £6.4m. Presteigne made a loss of £1.9m last year but is expected to make a small profit this financial year thanks in part to its involvement in the Rio Olympic Games.
According to Presteigne chief executive Mike Ransome, the deal “returns to us total control over how we plan for, invest in, and – most importantly – respond to our rapidly growing clientele, and their rapidly evolving requirements, worldwide.”
He said: “We’ve come such a long way in 25 years, seeing, meeting, and often exceeding expectations, from boat races on the River Thames to live broadcasts from the centre of a dormant African volcano.
“The time is right to take full control of Presteigne’s destiny, which will in turn enable our customers to respond to and exploit enormous revenue-generating opportunities worldwide.”
The MBO is supported by NVM Private Equity LLP.
NVM investment partner David Rolfe said: “Presteigne has a strong platform for growth and NVM is delighted to be able to support Mike and his team with the necessary resources to expand the business as an independent company.
“Presteigne has a strong client base, quality leadership, and operates across different geographies, sectors and specialist areas of the broadcasting industry.
“We are looking forward to working with the team on this next exciting chapter and warmly welcome Presteigne to our portfolio of dynamic brands.”
Presteigne has been part of Avesco since shortly after the company launched in 1991.
Earlier this year Avesco announced the sale of Fountain Studios to a property developer for £16m.