KCP funds MBO of Wells Plastics
THE Manchester office of Key Capital Partners (KCP) has taken a “significant” minority stake in a Staffordshire-based chemicals firm following a management buy-out.
Wells Plastics, which is based in Stone, is a specialist additive masterbatch manufacturer which makes additives for plastics to enhance properties. The modified plastics are then sold on to customers in a variety of sectors including consumer, automotive, construction and agriculture.
The firm has been growing at an annual rate of around 20% in recent years, and in the year to June 30 2010 it made a pre-tax profit of £1.4m on sales of £8.7m.
KCP has invested around £3.8m in the business, which will allow it to sell its Reverte product – an oxobiodegradable product – into markets in the Middle East, Africa and South America.
Wells Plastics has also received debt funding from Nat West and from its incoming executive chairman, Paul Richardson.
KCP’s Manchester-based partner, Andy Gregory, has also joined the board. “The management team at Wells has consistently displayed great vision in terms of predicting and responding to the future needs of retailers, manufacturers and other end users of plastic products,” said Gregory.
“Our investment will enable the company to expedite its growth strategy and to move increasingly into global markets.”
Clearwater Corporate Finance and law firm Cobbetts advised the new management on the transaction. KCP was advised by BDO and Pinsent Masons, and the exiting shareholders were advised by Beswicks Solicitors.
