Bank of Scotland funds newsagent and c-store group
Bank of Scotland has provided a£165 million debt and equity package to support a management secondary buy-out of TM Group, the independent operator of newsagents and convenience stores.

The secondary MBO will enable an exit for the incumbent private equity investors, Montagu Private Equity and Electra Partners, which acquired the business in 1995. Management and employees have rolled over a significant proportion of their equity, and will hold the majority of the equity in the new vehicle with Bank of Scotland taking a minority stake.

TM is the largest operator of newsagents and convenience stores in the UK, with more than 1,300 trading outlets under the McColls, Martins, More, Forbuoys and Dillons fascias.

Since its initial buyout in 1995, TM has successfully performed a number of strategic acquisitions and disposals, creating a national neighbourhood retailing group. Head office operations are based in Brentwood, Essex and TM employs in excess of 10,000 branch employees.

TM chairman James Lancaster said: 'We see significant opportunities for growth in the independent convenience store and newsagent sector.'

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