MBO deal agreed at Mail Solutions

Print, envelope and mailing firm Mail Solutions has been bought in a £7.4m management buyout (MBO) from owner Homeserve.

Household repairs group Homeserve sold Mail Solutions to concentrate on its core business. The MBO is subject to shareholder approval at the end of the month but according to the head of the MBO, Mail Solutions group managing director Alan Griffiths, the meeting will be a formality.

“The previous group directors have resigned from their positions,” he said. “The strategy for the next 12 months will be consolidation and then we will review which areas need investment.”

Griffiths is one of six directors who form the MBO team. They include finance director Phil Reid, managing director of the print division Tony Banks and managing director of the mailing operation Chris Sherman.

The MBO was financed by HBOS. An extra six staff will be employed in the mailing division and no redundancies will be made across Mail Solutions’ divisions.

“This is good news for our customers and employees because there has been uncertainty over the future of the company,” said Griffiths.

In 2003 Mail Solutions posted a turnover of £24m and pre-tax profits of £1.8m. The firm’s print facilities are based in Corby while the mailing and envelope divisions are in Telford.

Earlier this year, Mail Solutions won a three-year contract to manufacture pre-paid Airletters for Royal Mail.