VCT News
Beringea Backs MBO of Path
27 February 2008 - London - Beringea Ltd, Manager of the ProVen VCTs, has backed a £7 million Management Buy Out (MBO) of Path Group Plc, one of the UK's leading distributors of consumer electronic accessories.
Path specialises in electronic entertainment accessories, including those for use with MP3 Players, high definition and flat screen TVs, game consoles and audio equipment. Path has been distributing electronic accessories since it was founded in 1984 and is now a leading distributor in the UK with established international operations in the US, Russia and Hong Kong. In addition to distribution of premium consumer electronics, and large scale distribution of white label products for high street chains, Path also markets its own brand, IXOS.
The company has clear plans for growth and has already made significant investment both in its people and its international operations network. Path has impressive and long standing relationships with all the major retailers both in the UK and Europe and has established a significant foot hold in US and Russia.
Beringea has backed the £7 million MBO using their ProVen VCT and ProVen Growth & Income VCT funds. Beringea has also introduced Nick Pearch as Chairman, who as well has having held significant non executive positions was previously group commercial director of Dyson Appliances.
The deal was led by Beringea Director Jamie Kennell, who joins the Path board as a non-executive director.
Jamie commented "Path is a successful and highly profitable player in the market, but we believe there is great potential for further growth through international expansion and development of the IXOS brand. We are pleased to have the opportunity to back a proven and experienced management team and a highly experienced chairman with international credentials.
Nick Pearch, Chairman of Path commented, "This is an exciting opportunity for Path Group, which is already a leader in this dynamic market place. With high quality product and well established international operations Path is well placed to exploit the international market. I am very excited both to be working with this management team, and about future prospects for the company."
The management team comprises Joe Carri - Managing Director, Tony Sanderson - Finance, and Chris Harris - Logistics. The team are all experienced managers within the company. Joe said "We have worked hard to reach this important stepping off point and we are really looking forward to pushing the group forward with the new talent that the MBO has brought to the board. The IXOS brand has strong credentials and we will be working to fully develop its potential worldwide."
About Beringea Ltd
Beringea Ltd. is an international private equity and investment banking firm with offices in London, Detroit, Los Angeles and Shanghai. Beringea is the manager of funds including Proven VCT, ProVen Growth & Income VCT, and Global Rights Fund II, amongst others.
Beringea launched its first VCT in 1996, making it one of the most experienced VCT managers in the UK. ProVen VCT and ProVen Growth & Income are the highest performing VCTs of their launch years, according to www.taxefficientreview.com. In 2006 the Association of Investment Companies named ProVen Growth & Income as its highest performing VCT member.
www.beringea.com / www.provenvcts.com
Beringea Ltd is authorised and regulated by the Financial Services Authority
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