151 Products rescues troubled fmcg
MANCHESTER consumer products group 151 Products has bought the business and assets of Swirl Products, trading as fmcg, from joint administrators Russell Cash and Ben Woolrych, partners at FRP Advisory, the restructuring and advisory firm.
The transaction will allow further investment into the fmcg business under the new ownership and management guidance of family-owned 151 Products and its investment arm b7 Ventures.
Based in Oldham, fmcg has been a dynamic supplier of branded personal care and household products for the past 20 years.
Fmcg’s core brands include Nuage, Escenti, Systeme, Dentiplus, Salon Chic and Hygienics all of which are sold into high street retailers, pharmacies and wholesalers throughout the UK and across 32 countries worldwide.
Earlier this month the company appointed administrators at FRP Advisory to allow the business to continue to trade and service its long-standing loyal customers.
Fmcg recently suffered an acute shortfall in cash-flow following the sale of its shares to Statestrong Products, leaving fmcg with no viable alternative other than to seek the protection of administration. The administration process allowed fmcg’s ongoing trading to be ring-fenced from Statestrong.
The sale of fmcg’s business and assets to 151 repositions the business for its next stage of growth and development, securing job opportunities for core staff.
151 Products managing director and partner of b7 Ventures Richard Shonn said: “With the support of the 151 infrastructure and our access to market, we expect a very exciting future for the fmcg brands, and a far more stable trading environment for their long standing UK suppliers.”
Ben Shapiro, partner at b7 Ventures, said: “Swirl’s underlying business remains profitable, it ended up in administration only as a result of the failure of its parent company Statestrong Products Limited earlier this month. With the right funding the fmcg team will be able to continue to grow its core brands and build on its success to date.”
FRP partner Cash said: “I am delighted to have helped secure a future for this well established, successful business. It has always had a very strong reputation in the sector and I think the acquisition by B7 and 151 sees it well placed to develop its offerings and prosper going forward; I wish all involved every success for the future.”
A team from the Manchester office of Gateley Plc, led by Andrew Buchanan, Corporate Recovery partner, with Aneesh Prasad, Senior Associate, and Rebecca Mills, Solicitor, acted for b7 ventures.
