RWK Goodman advise on management buy-out of Rygor
We have recently advised the shareholders of the Rygor group, the UK’s largest Mercedes-Benz commercial franchise partner, on its successful management buyout. The well-respected dealer group has been bought by John Keogh, who was previously Rygor’s sales director and Rish Channa, previously head of truck sales at Rygor. As of Wednesday 9 November 2022, Keogh has become Rygor’s managing director, with Channa being named commercial director.
Commenting on the MBO, Keogh said: “This is an extremely exciting time for us and the future of Rygor Group Ltd. We love the Rygor business and both Rish and I have been working within it for more than a decade. We have learnt a lot over the years from Tim Stacey, Paul Reed and Graham Drake who have been incredible owners of the Rygor business. Being able to say that we are now joint owners of the company, is a really special moment for us.”
Our transaction team was led by Corporate partner James Worrall and included Yasmine Qasim, Katharine Mortimer, Will Woods and Alicia Chown (Corporate), Tim Gofton (Employment) and Daniel Pinheiro (Real Estate). James said “We are delighted to have advised the Rygor shareholders Tim, Graham and Paul on the transaction, working alongside the teams at Deloitte and Bishop Fleming. Having worked with Rygor for several years it’s great to see the business in safe hands and we look forward to seeing it continue to go from strength to strength under John and Rish’s leadership.”
In June 2022, Rygor announced that it had started works on the build of a new, custom-designed dealership at the Worton Grange industrial park in Reading. The brand-new Mercedes-Benz Truck and Van centre is due to open officially in the next few weeks.
Commenting on the investment, Channa said: “It’s a big year for the Rygor business, and this investment demonstrates our commitment to continually investing in our facilities for the benefit of our customers and our incredible team. We know our team comes to work to feel valued and engaged and a fantastic working environment is a significant part of that. Our new Reading branch, which is conveniently located just a mile down the road from our existing Reading site, comprises nearly 44,000 sq. ft of space. It will allow us to offer enhanced services to our customers in the area, and our brilliant team at our current site will be moving over to the new Dealership, so our customers can rely on the exceptional service they know and depend on.”
Keogh and Channa will be joined on the Rygor Board, by group finance director Tim Smith (previously Rygor’s finance director) and aftersales director, Sean Joyce (previously Rygor’s service director). Both Smith and Joyce became directors of Rygor at the beginning of 2021, having progressed through the Rygor business into these positions, and both have been integral in the success of the company over the past 18 months.
Deloitte UK (corporate finance) and Bishop Fleming (tax) also advised the shareholders of Rygor on the transaction.
Paul Morris, Tax Partner at Bishop Fleming, commented: “It’s been great to work with Tim, Paul and Graham over the years as they’ve built the Rygor business, and we very much look forward to working with John and Rish going forward as it enters this exciting new phase”.
Commenting, Deloitte Corporate Finance Partner Phil Lane said: “It was a pleasure to support Tim, Graham and Paul on the transition of the business to the management team, and we look forward to seeing the business continue to grow and flourish in the future.”
Funding for the transaction was provided via an eight-figure package from Shawbrook.
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RWK Goodman has a dynamic, forward thinking team of corporate lawyers with the technical knowledge and experience necessary to get deals done in a manner underpinned by a personable and friendly style.