Multisol’s profits grow by 78%
CHEMICALS distributor Multisol Group increased pre-tax profits by 78% to £11.9m in the year to March 31, 2011, while sales climbed by 28.5% to £150.6m.
The business, which was sold to German chemicals giant Brenntag in a deal reported to be worth around £112m in September, attributed the success to “the resumption in demand from our key customers” following a difficult economic period, as well as a number of new business wins.
Multisol also said that strong cashflow generation of £9.2m had helped it to reduce debt by 14.5% to £21.2m. This also helped the group to report a strong improvement in its net asset position to £15.7m, compared with £7.5m at the start of the year.
Nantwich-based Multisol is a distributor of chemical additives used in oils and lubricants.
Until the sale to Brenntag, Multisol had been owned by a management buy-out team led by chief executive Paul Oliphant. The management team took charge in April 2008 following a sale by its previous owners in a deal which was funded by a £28m asset finance facility provided by Belgian bank KBC Capital.
A flotation of the company on the Alternative Investment Market had been planned for more than a year, but conditions on public markets remained volatile.
When announcing the sale in September, Oliphant also said that the tie-up with Brenntag also allowed it access to Brenntag’s global distribution capabilities, as well as cross-selling opportunities.
“We have enjoyed a tremendous period of business growth and support as an independent company,” he said. “This transaction allows us to become part of a dynamic global company providing us with the assets to support our continued growth opportunities and improve our service to both our customers and suppliers”.
