Greybull Capital

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Greybull Capital LLP
Industry Investment
Founded 1 April 2010; 8 years ago (2010-04-01)
Headquarters 32 Sloane Street, Knightsbridge, SW1X 9NR, London, United Kingdom
Key people
Nathaniel Jerome Meyohas, Marc Meyohas, Richard Cal Perlhagen, Daniel Goldstein[1]
Website greybull.co.uk
Footnotes / references
Registered Nr.OC354497[2]

Greybull Capital LLP is a private investment company that specialises in medium to long term investments in UK companies. It was incorporated as a limited liability partnership in April 2010.

Company structure[edit]

Greybull Capital's four members are Nathaniel Jerome Meyohas, Marc Meyohas, Richard Cal Perlhagen and Greybull Corporate Partner Ltd;[3] Greybull Corporate Partner Ltd, is owned by Jerome Nathaniel and Marc Meyohas with equal shares, it was formed on July 2012.[4]

Greybull Capital say they "make long term investments in private companies" with a "broad portfolio spanning investments in the energy, technology, retail, industrial and manufacturing sectors in Europe and the United States".[5]

Greybull Capital is run by brothers Marc and Nathaniel Meyohas and longstanding family friend Richard Perlhagen. "We are a family-owned, family-run business with interests everywhere" Marc Meyohas said in a Sunday Times interview March 2012. Greybull was set up to invest the wealth of the two families, whose ties go back forty years. Marc and Nathaniel Meyohas's father is a French corporate lawyer. Perlhagen’s father owned a Swedish pharmaceutical operation which was sold for over ten million pounds.[6] Marc Meyohas said in a phone interview May 2016 “It’s purely family money; we don’t manage institutional capital. As a result you can move quickly.”[7]

Buy-outs, backing and negotiations[edit]

New Era; petroleum, 2010[edit]

Greybull backed New Era Petroleum Inc, since 2010 with both working capital to develop its activities and capital to acquire and re-develop oil fields in the US.[8]

New Era of Wyoming, USA owns The Greybull Field oil well in Greybull, Wyoming.[9]

Plessey; semiconductors, 2010[edit]

Greybull supported management’s plans to restructure and re-develop Plessey Semiconductors Ltd, of Plymouth, Devon, since 2010 and has financed add-on acquisitions.[8]

Comet; electrical retailer, acquired 2011; insolvent 2014[edit]

Greybull led the backers of OpCapita's buyout of Comet Group, November 2011,[10] a 236-store business, employing 7,000 for £2; plus a £50m dowry paid by the past owner.[11] Comet of Hull, UK, went into administration November 2012.[12] Comet closes its last stores December 2012.[13] Comet's administrators, Deloitte, said the collapse would cost the UK government £23m in redundancy payments and £26.4m in tax owed;[14] Deloitte's figures showed OpCapita recouped almost £120m from the insolvency.[15] A tribunal ruled, June 2014, that Comet did not follow redundancy rules, so an additional £26m must be paid by the UK Government, on top of the statutory redundancy it previously paid.[16] Comet's collapse dubbed the biggest raid in British corporate history, November 2014. A Government statement said “The Secretary of State has concerns about the financial burden placed on the taxpayer caused by the collapse of companies such as Comet and is considering the options available”.[16]

Rileys; sports bars; acquired 2012; insolvent 2014[edit]

Greybull acquired Rileys, a UK sports bars and snooker hall group, through a pre-pack administration in 2012. It was reported, Pre-packs can be controversial as they allow the new owner to shed a company's previous debts .[17] Greybull shed about half of Rileys sites.[18] Greybull tried to sell the company in summer 2014 but no buyer was forthcoming and Rileys was placed in administration for a second time 15 September 2014.[19] In 2016 there were 30 Rileys Sports Bars in the UK, owned by Rileys Sports Bars (2014) Ltd.[20]

Metalrax; baking equipment, 2013[edit]

Marc and Nathaniel Meyohas of Greybull Capital, the directors of Bowman Birmingham, which acquired Metalrax out of administration. Almost 400 jobs were secured; April 2013.[21] KPMG, an auditing service, reported into the pre-packaged insolvency, showed: Greybull paid more than £8m. The deal left the group pension deficit of £16.9m as an unsecured creditor, with chances of repayment now in the hands of the Pension Protection Fund. A solvent offer was on the table before Metalrax's collapse, Grove Industries were report to be disappointed not to conclude a transaction in the time available.[22]

Arc; engineering, acquired 2013; sold 2017[edit]

Greybull fully financed Arc Specialist Engineering Ltd, a conglomerate of businesses in the steel industry and became its majority shareholder[8] The business born in 2013 from the collapse of Metalrax Group was returning to profits.;[22] Greybull sold Arc (Europe’s largest producer of high quality non-stick coated steel for the bakeware industry) to a management buy-out, backed by Mobeus Equity Partners, July 2017.[23]

Constar UK; plastic bottles maker, 2014[edit]

Greybull Capital purchased the UK arm of Constar International Holdings for £4.3m, through Sherburn Acquisitions, a vehicle set up to handle the transaction; February 2014.[24][25][26]

Murco; fuel stations and refinery, 2014 (negotiations only)[edit]

Greybull reported to be in "an advanced stage" in negotiations for between Murco Petroleum at Milford Haven; Reuters reported "The $500m deal could be signed in mid-April"; March 2014.[27]

Monarch; airline, acquired 2014; insolvent 2017[edit]

Greybull purchased 90% of Monarch Holdings Ltd, a UK airline, trading as Monarch, 25 October 2014 in return for £50m capital commitment: the remaining 10% passed to Monarch's pension scheme. Greybull Capital's partner Marc Meyohas said in a press release: "We are delighted to acquire Monarch and invest our capital into a very strong brand with great potential" : Greybull's investment secured £125m of capital and liquidity facilities; Restructuring involved reducing its aircraft from 42 to 34, 700 redundancies and wage reductions. The Financial Times reported, that since Greybull bought Monarch, the airline has been transformed. Monarch delivering its 1st profit in three years in 2015.[28] Greybull employed Deutsche Bank in April 2016 to 'explore strategic options for Monarch Airlines', including growth opportunities in Europe and selling it.[29] Monarch Airlines seeking in June 2016 to secure £35m either from Greybull or a 3rd party.[30] Amid rumors of imminent bankruptcy in September 2016 Monarch's ATOL aviation insurance was extended for 2 weeks by fresh investment,[31] and by then, £165m of Greybull investment renewed Monarch's annual licence.[32]
Monarch ceased trading on Monday 2 October 2017, leaving 860,000 passengers without flights and is Greybull’s third venture that has failed.[33] Greybull Capital's founder, Marc Meyohas, blamed sterling’s weakness, Middle East terrorism and Brexit for the airline’s demise. The biggest in British aviation history.[34]

During administration, it was reported that Greybull's losses were limited, as Monarch had £48m cash in bank, and £60m of landing slots to sell. After administration, it was reported that most of Monarch's £165m bailout had come from Boeing and not as reported, from its owner Greybull. Boeing injected more than £100m into Monarch’s offshore holding company, 'Petrol Jersey'.[35] Boeing's cash injection arose from an order of 32, 737 Max planes, finalised after Greybull's acquisition. None had been delivered when Monarch liquidated. Greybull responded that financing details were 'commercially confidential'.[36]

Monarch's liquidation will be debated in Parliament, week commencing 9 October. Sir Vince Cable, MP, said: “The lack of transparency is shocking. Customers, staff and taxpayers deserve to know how Monarch was funded"[37]

Greybull acquired Monarch Aircraft Engineering Ltd (MAEL) as a part of Monarch Airlines. MAEL announced, it was not part of the liquidation and would continue as a standalone business, employing over 730 staff[38] The FT reported that Boeing had paid £10-15m into a joint venture involving Monarch’s engineering services unit, which was not placed in administration.[39]

The transport minister urged Greybull to contribute towards the £60M bill of repatriating Monarch's 110,000 stranded passengers.[40] The FT reported that some initially suggested that Greybull lost £250M in Monarch's collapse, but they calculated that Greybull, as preferential creditor and owner of MAEL, worth about £60M, may walk away with a £15M profit from the liquidation,[41] leaving staff, customers and tax-payers to stump up the shortfall.

M Local; convenience stores, acquired from Morrisons 2015; insolvent 2016[edit]

British supermarket chain Morrisons sold its "M Local" convenience store subsidiary to a team led by retail entrepreneur Mike Greene, backed by Greybull Capital, for £25m, incurring a loss of about £30m. Under Greybull’s ownership, 140 stores were rebranded ‘My Local’, safeguarding jobs of the 2,300 staff. M local's operating loss for 2014 was £36m.[42]

Greybull put My Local into administration June 2016, 9 months after buying it.[43] Ninety stores closed, more than 1,200 shop workers laid off, some without redundancy pay; the remaining 35 stores reportedly sold.[44] Morrisons offered to rehire former employees who lost their jobs. Part of the sale to Greybull involved Morrisons guaranteeing some store rents if the business collapsed. Morrisons was left with a potential liability of about £20m.[45]

Tata Steel Europe; long products division, from Tata, 2016[edit]

Greybull announced 11 April it would buy Long Products Europe from Tata Steel Europe (TATA Group).:[46] The assets include Scunthorpe steelworks, two mills in Teesside, the Railway Engineering Consultancy TSP Projects Ltd. and a rail mill at Hayange, France.[47] Tata Steel had been trying to sell its struggling UK steel business since 2014.[47] Tata was in exclusive talks with Greybull, since December 2015, when they signed a Letter of Intent to sell Long Products Europe. The UK government was under pressure to help a sale process after Tata announced in March 2016 it would withdraw from the UK market. In April Tata announced Greybull would buy Tata's Long Products Europe business for £1. Greybull may bring £400M of investments into the company. A future is offered for its 4,400 UK employees.[47] Greybull will trade under the name "British Steel Limited",[48] formerly used under the British Steel Corporation (BSC) group.

Carillion; construction and outsourcing, 2018 (negotiations)[edit]

Greybull negotiating buying parts of Carillion from The UK Government’s Insolvency Service, after its liquidation, January 2018.[49] A purchase not visible.

References[edit]

  1. ^ https://www.theguardian.com/business/2016/apr/11/greybull-capital-tata-steel-scunthorpe-buyer-what-we-know
  2. ^ "Greybull Capital Llp". Company Data REX. 
  3. ^ "Greybull Capital's 4 members". companiesintheuk.co.uk. 
  4. ^ "Greybull Corporate Partner Ltd's structure". check-business.co.uk. 
  5. ^ "Greybull Capital's webpage". greybull.co.uk. 
  6. ^ "Revealed: The dealmakers behind Comet crash". Sunday Times. December 2012. 
  7. ^ http://londongatesandrailings.co.uk/greybull-a-family-business/
  8. ^ a b c "Monarch's press release on getting Greybull financing". 24 October 2014. 
  9. ^ "New Era Petroleum's website". 
  10. ^ "The man who crashed Comet". Sunday Times. 5 November 2012. 
  11. ^ "Comet Backers Recoup 54m From Retailer". The Telegraph. 5 November 2014. 
  12. ^ "Comet 'could cease trading by Christmas'". BBC. 28 November 2012. 
  13. ^ "Government probes Comet collapse". Financial Times. 18 December 2012. 
  14. ^ "Comet collapse to cost the government £49.4m". BBC. 5 November 2014. 
  15. ^ "... Elliott sells £59m of Game shares despite lock-up agreement". Telegraph. 18 September 2014. 
  16. ^ a b "Vince Cable looks at ways to reclaim taxpayers' cash lost in Comet collapse". Independent. 6 November 2014. 
  17. ^ "Sports Bar Owner Rileys To Score With Sale". Sky News. 8 July 2014. 
  18. ^ "Rileys Sports Bars placed in administration". Propel Info News.com. 14 September 2014. 
  19. ^ "Rileys in Administration Again". Insolvencynews.com. 16 September 2014. 
  20. ^ "Rileys Sports Bars website". www.rileys.co.ukm. April 2016. 
  21. ^ "Financiers Behind Metalrax Rescue Revealed". Inside Media. 3 April 2013. 
  22. ^ a b "Arc Specialist Road to Profit". Inside Media. 16 July 2013. 
  23. ^ "Mobeus Manufactures Buyout of Arc Specialist Engineering". 31 July 2017. Retrieved 3 October 2017. 
  24. ^ "Constars Sold to Private Investment Group". Plastics News. 26 February 2014. 
  25. ^ "Constars Sale". Bloomberg News. 10 February 2014. 
  26. ^ "Rescue deal saves 140 Yorkshire jobs". www.insidermedia.com. 21 February 2014. 
  27. ^ "Talks 'advance' on sale of Murco refinery". BBC News. 27 March 2014. 
  28. ^ "Greybull steels itself to turn round struggling Tata division". The Financial Times; Basic Resources. 
  29. ^ "Meyohas Brothers' Greybull Hires Deutsche Bank". dealmakershub.com 17 April 2016. 
  30. ^ "Greybull Capital controlled Monarch Airlines seeks £35m in short-term loans". Business Times 27 June 2016. 
  31. ^ "Monarch Airlines denies rumours of financial trouble". Press Association. Guardian (UK). Retrieved 26 September 2016. 
  32. ^ "Monarch Airline Agrees £165m Investment from Greybull". BBC News. 12 September 2016. 
  33. ^ "Monarch Flights Cancelled as Airline Ceases". BBC News. 2 October 2017. 
  34. ^ "Monarch's Owner Counts £250m Cost of Collapse". Daily Telegraph. 3 October 2017. 
  35. ^ "Revealed: Monarch owner's secret deal with Boeing". The Times. 8 October 2017. 
  36. ^ "Boeing helped finance bailout of Monarch Airlines". The Seattle Times. 2 October 2017. 
  37. ^ "Boeing reported to have funded last year's £165m bailout". Travel Weekly. 2 October 2017. 
  38. ^ "Monarch Aircraft Engineering Ltd continues to trade". 2 October 2017. 
  39. ^ "Boeing helped finance bailout of Monarch Airlines". Financial Times. 8 October 2017. 
  40. ^ "Monarch owner urged to contribute to repatriation bill". Financial Times. 11 October 2017. 
  41. ^ "Greybull eyes profit from Monarch collapse". Financial Times. 11 October 2017. 
  42. ^ "Morrisons Sells convenience Store Chain to Greybull". 9 September 2015. 
  43. ^ "Me Too". 28 June 2016. 
  44. ^ "My Local shuts up to 90 stores". 28 June 2016. 
  45. ^ "Morrisons offers to rehire staff from under-threat My Local chain". 22 June 2016. 
  46. ^ "Scan of Greybull's announcement". Twitter. 11 April 2016. 
  47. ^ a b c "Steel Saved: Tata sells plants to Greybull Capital". The Business Insider. 11 April 2016. 
  48. ^ "British Steel name to return in agreement". The Northern Echo. 11 April 2016. 
  49. ^ "Greybull circles Carillion assets". The Northern Echo. 8 February 2018.