Member Article

Management buyout of Harrington Brooks

Manchester debt solutions providers Harrington Brooks has been bought by private equity RJD Partners.

Clearwater Corporate Finance has advised on the deal, which delivers an exit for Inflexion Private Equity, which supported the company’s £15m management buyout in March 2005.

Harrington employs 380 staff at its Sale head office, and advises over 28,000 people on the repayment of credit by debt management plans and handles Individual Voluntary Arrangements (IVA) for around 7,000 clients.

Managing partner Mike Reeves and director Nick Horrocks from Clearwater’s Manchester office advised RJD Partners on the acquisition. Reeves said: “Harrington Brooks presents an excellent growth opportunity for RJD Partners.

“With its extensive knowledge of the services sector, RJD Partners will be able to build on Harrington Brooks’ already strong book and support the company in taking advantage of a growing consumer debt management market.”

John Dillon, Managing Partner, RJD Partners, commented: “We are delighted to back a well-established and proven management team in the buyout of Harrington Brooks. With UK household indebtedness continuing to rise, there is significant potential for the company to build on its excellent growth track record in a highly fragmented market place. We are confident the team is well positioned to fully exploit this.”

Sean Fitzgerald, partner and head of corporate at Cobbetts in Manchester, advised Inflexion on the exit and its original investment in Harrington Brooks in 2005.

Fitzgerald, who was supported by director Victoria Zivkovic and solicitor Sinead Ormerod, added: “Harrington Brooks has grown into a leading player in the debt management market and has expanded the business with a number of strategic acquisitions.

“The exit represents a significant return for Inflexion and its investors. We acted for Inflexion on its investment and were delighted to act for all shareholders on the exit.”

This was posted in Bdaily's Members' News section by Tom Keighley .