NVM Completes Development Capital Investment In musicMagpie .
2 October 2015
Entertainment Magpie Limited (musicMagpie.co.uk), the Stockport‐based recommerce site, has received a significant development capital investment from the Manchester office of NVM Private Equity.
Established in 2007 by co‐founders Steve Oliver (Group CEO) and Walter Gleeson (Group COO), musicMagpie.co.uk is the most popular recommerce website in Europe, providing consumers with cash for their unwanted CDs, DVDs, Games and Electronics.
NVM’s investment will primarily enable musicMagpie to launch its new ‘faster payment’ consumer offer which will in particular support the rapid acceleration of its trade‐in of electronics such as mobile phones, games consoles and laptops, along with enhancing the musicMagpie offer generally for all consumers who are seeking “quick cash”.
The investment by NVM comes as LDC exits the business following its investment in musicMagpie.co.uk in 2011 to support the business’ international expansion, which saw the business successfully launch its US website “decluttr.com” based in Atlanta.
Andy Leach, from NVM, will join the Entertainment Magpie board, alongside founders Oliver and Gleeson, and the company’s other Executive Directors in Ian Storey (Group CFO), Peter Petrondas (Group Electronics Director) and Jo Smith (Group IT Director). A non‐Executive Chairman will also join the board in the near future.
Steve Oliver, CEO of musicMagpie.co.uk: “We have enjoyed a strong relationship with LDC over the period of working together and are grateful for their support during the last four years, but we are now delighted to be working with the excellent team at NVM at such an exciting time for the business”
“We will now be launching our new faster payments offer for customers, which enables us to make payment for their items on the same day we receive them. This will allow our customers to not only declutter but also raise cash quickly for their unwanted items as a debt‐free alternative to the much maligned ‘pay day loan’ type lenders. We will also be looking to now expand our successful US business in the coming months, along with furthering the musicMagpie.co.uk platform to enable us to both buy and sell to our significant consumer base of over 3m users.””
Andy Leach from NVM said “We are very much looking forward to working with Steve and the team at musicMagpie to help them deliver the very clear strategies that the business has for the next stage of its growth”
The Deloitte Manchester office provided lead advisory services to the deal, with DWF (sellers) and Osborne Clarke (buyers) providing legal services. Due Diligence Services were provided by KPMG (Financial), Sempora Consulting (Commercial and Market), Intuitus (IT) and The Quinn Partnership (Management).
NOTES TO EDITORS
musicMagpie is a British business at the forefront of the global recommerce revolution. www.musicMagpie.co.uk is the most popular recommerce website in Europe and enables customers to get cash easily, and all in one place, for a whole host of their unwanted stuff such as CDs, DVDs, games, mobile phones and, electronics.
The company’s website and mobile Apps mean that anyone can easily take part in recommerce activity and reap the benefits – from making a little extra cash and freeing up valuable space in the home, to reducing the need for borrowing and minimising their impact on the environment.
What’s more, since it was established in 2007, musicMagpie has pushed over £63m of debt‐free capital back into the economy, putting extra cash into the hands of consumers and fuelling further spending. It now has sales of c£75m per annum across its two locales of the UK and US, establishing its US brand “deluttr.com” in Atlanta during 2014. The UK business employs c800 people, primarily at its two Distribution Centres in Stockport and Macclesfield, where the business was founded.
www.musicMagpie.co.uk gives customers an instant reward value for their unwanted stuff using a smart valuation engine named “ALIVE” and it now pays out 70% of the cash to consumers via bank transfer or consumers can choose to donate their cash to charity. Over 30,000 independently‐collected and published reviews for musicMagpie on Feefo have earned the company a 96% overall customer excellence score.
NVM Private Equity LLP (NVM) is independently owned with over 30 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing over £200 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy‐out. Typically, NVM looks to invest between £2 million and £10 million in each transaction.
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