MBO for Sheffield’s Babco UK

A rising force in the UK drinks and spirits market is poised for significant growth following a Management Buy-Out, which sees the team, led by Chris and Lewis Bowen buyout the majority equity stake of corporate shareholder, World of Patria International.

Sheffield-based Babco UK is building an extensive portfolio of both its own and managed brands, having Tofka Vodka and the whiskey liqueur Spirit of Louisiana amongst the fastest growing of its own brands, whilst recently adding Oranjeboom lager, Highclere Castle Gin, Pearse Lyons Whiskey and Ha’penny Gin to brands under its management in the UK.

Chris Bowen said: “Babco UK has enormous potential to capitalise on its already strong position and reputation within the UK drinks market. With the support of Castle Square, HSBC and Freeths, we are well prepared to take the business to the next level with some incredible brands and a strong team.”

Castle Square Corporate Finance, the Sheffield-based deal-making firm, advised the management on the Management Buy-Out and the fundraising process, led by Director – Kevan Shaw.

Kevan Shaw said: “The management team have significant expertise and contacts in the UK drinks and spirits market and have a portfolio of new products coming on stream with more to follow.  I am pleased to have advised the team on bringing the equity ownership fully into their hands, which will now allow for delivery of significant growth.”

HSBC delivered the debt funding required to complete the transaction and Peter Crawford and Caroline Thomas from Freeths’ Sheffield corporate team provided legal services to the management team.

James Coyle, Deputy Area Director at HSBC said: “Babco UK is an exciting business with great aspirations for continued growth and we are pleased to be able to support them on this journey.”

Peter Crawford, Partner at Freeths, added: “We were delighted to act for Chris and Lewis on their buy-out. Now the acquisition has taken place, they are in a position to deliver on their exciting plans to take Babco UK to the next level, and we wish them the very best for the future.”