Evo Group: Yorkshire firm undertakes management buyout as investor Endless exits

Lender Leumi ABL has now partnered with Close Invoice Finance Limited – a subsidiary of Close Brothers – to provide a £93m refinancing package to evo Group to allow the buy-out.

Mr Gale, said: “The Evo business has made major strides over the last couple of years and we are excited about the opportunities ahead.

“This refinancing and transaction unlocks the opportunity for evo to take on fresh investment to support our ambitions in terms of product and geographical expansion.”

Headquartered in Normanton, Evo Group is made up of six different brands, and generates over £500m of annual sales. The group also employs 2,000 people.

The firm provides sourcing, storage and fulfilment services to various sectors.

The latest announcement marks Evo’s third deal with Leumi and second with Close. As part of the transaction, the syndication, led by Leumi, has provided a £80m invoice finance facility and £13m in term loans, with an initial term of four years.

John Walsh, regional sales director for Leeds and North-East at Leumi ABL, said: “Evo is a high quality business with a bright future, which we look forward to continuing to support under its new ownership.”

Andrew Metcalfe, head of corporate sales at Close added: “We are delighted to support Andrew and the Evo team with the transaction. We look forward to a long-term partnership with the management team and our lending partner Leumi ABL.”

The announcement comes after Close Brothers last week revealed it had swung to a loss after setting aside £165m in provisions for the motor finance commission scandal. The firm posted a statutory pre-tax loss of £103.8m for the six months to January 31, against profits of £87m a year ago.

It came after Close Brothers last month put by the provision to cover possible legal and compensation costs following recent developments in the car loans commission affair, which has seen lenders in the sector on the hook for potentially billions of pounds’ worth of compensation for motor finance deals with hidden commission payments.

The Court of Appeal in London ruled last October that it was unlawful for car dealers to receive commission on motor finance from lenders without a customer’s informed consent. The court decision opened the door for a potential fresh wave of complaints from consumers who think they may have been mis-sold car finance in previous years. Close Brothers disagrees with the ruling and has said it intends to appeal in the Supreme Court.