Managers buy Liverpool recycling firm
THE management team at Liverpool recycled plastics manufacturer Centriforce Products has bought the business with the backing of the Merseyside Special Investment Fund (MSIF).
The deal was led by managing director Simon Carroll and finance director Mark Lloyd who have also invested in the company.
The value of the deal, which was supported with debt from NatWest, was not disclosed.
Centriforce was established in 1976 and has annual sales of £11m and 115 staff. It reprocesses plastic waste which is then turned into products such as outdoor furniture and fencing. Clients include John Lewis, Waitrose, Balfour Beatty, TNT, and The National Trust.
The largest shareholders were Niall and Joan Roy who held 50% between them. Four others who also held shares have also sold up.
Mr Carroll said: “We felt now was the right time to prepare the company for the next phase of its growth and have a number of exciting plans for product development and investment.
“Centriforce is a long established Merseyside company and a significant local employer. It was important for us to take the time to find the right partner to work with. MSIF’s local presence, investment approach and ability to actively support our growth plans gives us confidence that they can help the company to continue to prosper over the coming years.”
MSIF investment director Mark Borzomato said: “The recycling industry is known for being a tough business but has grown significantly with increased awareness of environmental issues, advances in how waste can be manufactured into quality products, and rising landfill costs.
“We believe the growth potential for the business is substantial and we look forward to being a part of the next phase in the company’s development.”
Corporate finance advice was provided by Paula McGrath, a partner at Brabners Stuart, the corporate finance arm of law firm Brabners which also acted for the buyout team. Hill Dickinson advised MSIF and DWF acted for NatWest. Financial due diligence for the funders was conducted by Mazars with management due diligence carried out by Altrincham-based Ashley Hoyle.
