Packaging and distribution firm wraps up MBO

Lyburn Supplies, based in Rugeley, has secured a £375,000 funding package to support a management buyout and continued growth of the business.

The family-owned packaging and distribution business, based at Trent Valley Trading Estate, was established in 1989 and has seen rapid expansion, now employing 16 staff and with turnover exceeding £6m.

Karl Willis, managing director at Lyburn Supplies, said: “We currently distribute around 3 million boxes and associated packaging products a month from our premises in Rugeley but Christmas is a vital period for the business accounting for approximately 35% of our annual turnover as demand for food packaging ramps up. We will deliver over 250,000 turkey boxes this year for the festive season before they end up on supermarket shelves across the UK.

“The new funding package will allow the continued expansion of the business. We currently export around 15% of turnover and estimate to double this over the next 12 months. We also recently invested with the introduction of an automated stock location and control system bringing stock losses down to an absolute minimum. We have recently invested in a new 10,000 sq ft distribution centre in Clonmel, Ireland to enhance our service offering to our Irish clients and allowing seamless continuity in the uncertainty of Brexit.”

Steve Sargeant, Barclays relationship director, added: “By really understanding the business and the industry sector, Barclays has been able to deliver a funding package to support the management buyout. The new facility demonstrates both Barclays and Lyburn Supplies confidence in the continued growth and success of the business. Karl started as a YTS trainee in a retail shop when he was 16 and is a great example of how the right attitude and aptitude can create the entrepreneurs of the future.”