Gordons advises Concept Merchandise on its acquisition by LiteBulb

Gordons has advised Yorkshire manufacturer of stationery and party concepts, Concept Merchandise, in its acquisition by AIM-listed LiteBulb. The £5m deal will see LiteBulb add significantly to the wide range of items they currently offer to its top retailers in 30 countries.

Founded in 1990, Concept designs, develops and manufactures wrapping paper, gift tags, gift bags, gift cards and party products, supplies to national and international blue chip customers and works with companies including Mattel, Universal and News UK selling to retailers like Sainsbury’s, Tesco, M&S, WH Smiths and Debenhams. In 2004, it was taken over by husband and wife team Howard and Heather Partington and for the year ended December 2013, recorded a turnover of £7.5m and pre-tax profits of £1.1m.

LiteBulb is backed by Andrew Black, co-founder of Betfair (owns 8%) and serial small cap investor Nigel Wray (6.6%). This is LiteBulb’s sixth acquisition since listing on AIM in 2010 and its first foray into Yorkshire. LiteBulb has grown from a business with less than half a million pounds turnover in 2009 to a business with turnover in excess of £20m this year and is expected to record its maiden profits in the year end numbers (to 31 December 2014).

Mazars’ corporate finance team advised Concept on the sale alongside Gordons corporate team which included Partner Jonathan Asquez, solicitor Duncan Firman and tax specialist Julian Moran.

Completion of the deal is expected in mid December.