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Dream Doors Ltd

Transaction: Company Sale
Sector: Retail
Completed: February 2019
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Meridian advised the shareholders of Dream Doors on the sale to Neighborly, a US-based franchise group backed by US private equity firm Harvest Partners, with Meridian realising an equity stake as a result of the transaction.

Founded in 1999, Dream Doors is a renowned Segensworth-based kitchen refit franchisor with a network of over 90 franchisees nationwide.

In 2016, Barclays introduced Dream Doors to Meridian to begin establishing succession plans for Dream Doors shareholders. The process culminated in a Management Buy-Out (“MBO”) which was led by Meridian in 2017, followed by a partial shareholder exit in 2018, both of which were funded by Mark Stuckey and Chris Collings of Barclays. 
As part of the initial MBO, Meridian invested alongside the management team, and became heavily involved in working with the management team to drive the growth of the company. This entailed sourcing a high calibre MD candidate, overseeing the transition to a new head office, managing covenants under the MBO debt, as well as a range of other activities.

Neighborly, a Texas-based franchise group backed by US private equity firm Harvest Partners, acquired the business in February 2019. Founded in 1981, Neighborly holds 21 service-based franchise organisations across 9 countries. The acquisition of Dream Doors will enable Neighborly to establish themselves within the UK franchise market and continue to develop the nationwide network of Dream Doors franchisees. 

Darren Thompson and Michael Barcia, directors at Meridian, led the transaction, with tax advice provided by DSA and Trethowans acted as solicitors for the shareholders. Trethowans corporate partners Nick Gent and Lucy Gleisner worked closely with Meridian to support the management team throughout the negotiations. 

Following the transaction, Troy Tappenden, Founder Chairman at Dream Doors commented, “I’ve been working with Darren and Mike and the Meridian team for the last three years at Board level.  We started off with a transaction which allowed me some money off the table, which was a great feeling and we ended with a sale at maximum value, achieving my life’s work and dream.The Meridian team have been extremely helpful and incredibly patient with me.  They are so honest, trustworthy and transparent and it is truly refreshing working alongside people like this.  They are all incredibly intelligent and excellent at what they do.  I have learned a huge amount along the way; they really are at the top of their game.

Before meeting Darren and Mike, I had taken my business around the block a few times without success.  I cannot urge anyone enough, that in order to succeed, you need the Meridian Team.  I have and still am recommending them to everyone I know!”

Darren Thompson, who led the transaction, commented, “It’s been a pleasure supporting Troy and his management team through three transactions in quick succession; not only has he been great to work with, it is so rewarding to see that the two deals structured prior to the sale led to such a successful process which worked for everyone involved.”

The buyers had legal advice from White & Case, tax advice and due diligence was provided by KPMG.
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