Yorkshire Bank Corporate & Structured Finance funds Automated Systems Group management buy-out

Matrix Private Equity Partners (Matrix), the small buyout specialist, has invested £4.25 million in the management buyout of Automated Systems Group Ltd (ASL), a leading provider of reprographic and print solutions to SMEs and the education sector. Matrix is taking a significant minority stake in the business which has annual revenues of over £10 million. Yorkshire Bank Corporate & Structured Finance has provided a £3.5m debt package.

Based in Cambridge, ASL was established in 1991 and has developed a strong geographic presence providing printing and copier services to schools and SMEs primarily in East Anglia, London, Essex and the Midlands. The company employs 70 staff and supplies the latest printing hardware technology and ongoing service and maintenance services to over 4,000 customers.

Matrix has introduced Clive Parritt as non-executive Chairman of ASL. Parritt is a qualified accountant, will be President of the ICAEW in 2011 and is also Chairman of Matrix investee companies, DiGiCo and BG Group.

Mike Selina, director with Yorkshire Bank Corporate & Structured Finance in Leeds led the team with Seth Vaughan, associate director. Mike Selina said: "ASL is a prime example of a good business coming to market and attracting the support of both private equity and bank funding. The nature of ASL's business provides it with a robust cash flow and it has the support of a loyal, well spread customer base that rates the service it provides highly. In Matrix we have a partner with the ambition and ability to support the growth of the business organically and via acquisition."

Guy Blackburn, investment manager at Matrix who joins the Board of ASL as non-executive director commented: "ASL is an excellent platform to pursue a 'buy and build' strategy in the sector. The core business is well established and profitable and has an excellent reputation with its customer base and in its region. The management team are proven operators with a strong acquisition track record. We intend to further consolidate our regional strength by making select acquisitions and believe an enlarged group will eventually be an attractive target to some of the larger national players looking to expend their geographic reach."

Mark Garius, managing director of ASL commented: "We were impressed with Matrix's understanding of our business. They have a fantastic reputation as a solid financial partner and we look forward to working with them and expanding the business through follow-on acquisitions."