Stone Group undergoes MBO

Buyout supported by private equity firm Souter Investments

Staffordshire-based Stone Group has undergone a management buyout (MBO) supported by private equity house Souter Investments.

The MBO was led by CEO Simon Harbridge (pictured) and includes sales and marketing director Tim Westbrook, CFO Adrian Frost, procurement director Peter Berks, technical services director Chris Hykin, and operations director Lawrence Richards.

Private equity firm RJD Partners supported a previous MBO in 2008, investing £28m in the PC builder and reseller.

Details of the new deal have not been disclosed but RJD has "realised" its investment in Stone and some individuals who have invested in the previous fund continue to invest in the new structure.

"This represents an important and significant milestone for the group. RJD has been a highly supportive partner for more than 10 years, but now needs to close out its second fund. I am delighted that David MacLellan, chairman and founder of RJD, has accepted the role of non-executive chairman of Stone and has invested personally alongside Souter," stated CEO Harbridge.

"Souter shares our vision for the group and will be a strong and dynamic supporter for the next stage of our journey.

"I am privileged to lead a fantastic team at Stone. We continue to grow strongly, adding net new customers in each of our vertical markets, while continuing to develop infrastructure solutions and services alongside our traditional hardware offerings and growing the value of each customer."

John Berthinussen, investment director at Souter, added: "Stone Group presents an exciting opportunity for Souter Investments to back an experienced and successful management team leading an established and significant technology business that is highly regarded in a fast-moving sector.

"We look forward to working with Simon and his team as they continue to drive organic growth and expand the breadth of Stone Group's technology, service and support offerings, with the opportunity for both to be accelerated by M&A."

Stone ranked 48 in CRN's Top VARs 2019 with a turnover of £81.7m.