Middleton foam specialist is bought by international investment fund
Investment group SVPGlobal has acquired foam manufacturer Vita Group through a purchase of all of its shares.
SVPGlobal invested in Middleton based Vita because of the firm’s growth prospects and is working with the company on its future plans.
Victor Khosla, SVPGlobal’s founder, said: “We are delighted to welcome the Vita Group to our portfolio of businesses.
“We will be working with management to support Vita’s strategy for innovation and growth and look forward a close collaboration with its teams across all of Vita’s sites.”
Vita Group chief executive Jon Cheele said: “This is a new and exciting partnership for the Vita Group. We look forward to working with the team from SVPGlobal and continuing to serve our customers to achieve their goals.
“Vita has a reputation for creating foam that protects, cushions and adds vitality and working with SVPGlobal will help Vita to successfully grow our business through maintaining and developing its long-term customer partnerships.”
The financing for the transaction came from Barclays and NatWest Markets.
Martin Souter, Relationship Director at Barclays, who led the financing, said: “We are pleased to have supported SVPGlobal in this strategic acquisition and to be working with Europe’s leading PU foam manufacturer.
“The funding package helps support Vita Group’s ambitious growth plans and we look forward to helping the team deliver their strategy.”
In 2017 Vita recorded increased sales of €674 million, a 12% increase on prior year. Net cash totaled €96.0 million at the end of 2017.
Since 2007, Vita business has been significantly re-shaped and has enjoyed a period of growth in its core business under TPG’s ownership.
Vita has expanded from its established markets of Western and Central Europe into a number of new geographies including Eastern Europe, the Balkans and China.
It has opened plants in Romania (2007 & 2009), Croatia (2009), Bulgaria (2010), Republic of Serbia (2014), Poland (2015 & 2018), China (2016) and Albania (2017).
Investment has continued in Western European plants, with a number of growth initiatives executed and planned.
In 2017, Vita continued the roll out of its behavioural safety initiative, ‘Vita Towards Zero’, part of a major health & safety campaign to train and support employees.
Vita is focused on its core business of flexible polyurethane foam and associated products in Comfort, Technical and Flooring markets.
Vita develops, manufactures and markets a range of polyether and polyester foams, Talalay latex foam, reticulated/laminated/impregnated PU foams, liquid compounds, underlay and flooring products and expanded polystyrene block.
These are components for other industries as well as semi-finished and some finished products.
Vita operates in 15 countries on 38 sites, with around 2,700 employees.