The management buyout was supported by Bank of Scotland Corporate who provided an integrated debt and equity package, together with private equity raised by the management team.
As a result of the changes Richard Riding and Patricia Cottrell will both be reducing their day to day involvement in the business. Rick Riding will be retained as a strategic advisor to the new Board and will continue to lead the annual Paymentshield Roadshows. Other members of the family involved in the business will remain in their existing roles on a full time basis.
Stuart Pender, formerly Commercial Director of the Bankhall Group, will join the existing Paymentshield Management team to lead the buyout. Stuart’s responsibilities within Bankhall have included the development of the Bankhall Mortgages brand, which incorporated overseeing the recent acquisitions of Premier Mortgage Service and Norwich Union Mortgage Club, and the highly publicised strategic alliance with Paymentshield.
Rick Riding commenting on the buyout said: ‘It is very much business as usual at Paymentshield. Over recent years we have worked hard to develop a succession plan and operational management team that can sustain the ethos and dedication that myself and Pat contributed to Paymentshield since we founded the business back in 1992. The focus of Paymentshield has always been to create market leading products and services that will empower the intermediary in a market place where complexity and choice leaves the consumer with a need for advice. Paymentshield will continue to be independent and will continue its innovative approach to product development and sales & marketing.’
Stuart Pender, Chief Executive of Paymentshield Holdings Limited commented: ‘Having worked very closely with Paymentshield in creating the Bankhall and Paymentshield alliance, I am delighted to have the opportunity to join the management team. Paymentshield’s success has been built on an enviable reputation within the market place and the new management team believe we are now in a position to take Paymentshield to the next level and create a long lasting and sustainable brand in the market place as the leading provider of mortgage related general insurance products and services to the intermediary sector.’
Frank Summers, Director of Bank of Scotland Integrated Finance added, ‘We are delighted to be supporting Stuart and the Team in their completion of the Management buy-out. Paymentshield enjoys a unique position within the mortgage intermediary sector and we look forward to working with the management team moving forwards.’
