US group snaps up Burnley packaging firm

A £20m turnover Lancashire packaging firm has been bought by the world’s sixth largest packaging company, Coveris.

Burnley-based Learoyd Packaging has around 180 staff at its base at Heasandford Mill, Netherwood Road.  Founded in 1976  it is one of the UK’s leading flexographic print specialists, its clients include Seabrook Crisps, Warburtons, Waitrose and Marks and Spencer.

Financial terms of the sale to Coveris were not disclosed. Headquartered in Chicago and backed by investment firm Sun Capital the company has 64 plants across North America, Europe, the Middle East and China, and aggregate revenues of more the $2.8bn.

Allan Ferguson, managing director at Learoyd, said: “Over recent years, we have invested in the long-term growth of the company to develop a state of the art facility with extensive design capabilities as well as training and development for our staff.

“The backing of Coveris will enable us to deliver accelerated growth in a market which offers considerable expansion and cross-selling opportunities both in the UK and internationally.”

Companies House records reveal that Mr Ferguson, Anthony Flanagan and Raymond Harrison were the shareholders of the business prior to the sale.

The corporate finance team at BDO in Manchester was lead adviser to Learoyd. Led by partner Ruth Percival, Sam Irving and James Fieldhouse, the firm’s sale mandate sourced interest from potential purchasers across the world.

Ruth Percival, said: “Learoyd has invested heavily in its people and infrastructure following its MBO in 2003. With a quality management team that has delivered revenue growth of almost 10% year on year since 2005, it was an attractive proposition for many trade buyers and private equity investors around the globe.”

Mark Lapping, president of Coveris’ UK Food & Consumer business, said: “Learoyd has built an enviable market reputation for flexible packaging through its innovative culture, focus on best practice and strong management team.  Through our aligned capabilities in flexographic print, Coveris’ investment in Learoyd will offer our customers greater access to first-class technology and an extensive knowledge base.”      

Other North West advisers to the vendor included Emma Suchland and Lauren Fletcher at BDO (tax) and Craig Scott and Jonathan Brown at law firm Hill Dickinson.

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