Endless exits tech packaging business in £33m deal
FTSE 100 packaging business Mondi has acquired a packaging business from Endless in a £33m deal.
The Mondi Group has acquired Excelsior Technologies, based in Deeside in Flintshire, from Leeds-based Endless and a number of other minority shareholders.
Excelsior produces packaging solutions, mainly for food applications, and packaging technology for microwave steam cooking. Excelsior has plants in Deeside and Nelson in Lancashire, and for the year ended 31 December 2016, it generated revenues of £39m.
Enact, the SME fund from Endless which is backed by Leeds United defender Danny Mills, invested £2.5m in the business alongside Growth Capital Partners two years ago.
This exit is the second by the Enact Fund and delivers a 9.1x return to investors.
Chris Cormack, investment director at Enact, which exited the West Cornwall Pasty Co just four weeks ago, spoke to TheBusinessDesk.com following the announcement.
He said: “We see 250 opportunities a year, and the key is finding the good ones in there. The main question is, ‘do they have a unique selling point?’
“West Cornwall Pasty Co. has a fantastic brand and Excelsior (without getting too technical) has a unique integrated valve to enable the production of microwave packaging for vegetables. They have sold into Europe and America, to big customers. It has a fantastic manufacturing plant in Deeside – the largest flexible packaging facility that exists in Europe, which was a massive attraction for us. They have good products, great manufacturing facilities, we just needed to correct areas.
“Excelsior was heavily loss-making when we acquired the business. Now it’s profitable, employs 280 people and turns over £39m.
“We invested in the business and supported it. The growth has come from business improvement, not from the number of staff being reduced – there were actually less people in the business when we took it on – we created a profitable business which is attractive and a purchaser found us. It’s a great success story. We’ve very proud.”
He highlighted the Excelsior management team including Keith Chapman, Julie Eller, Ian Bragg and Paul Thomas, as well as Deloitte, led by Nick Wood and Gordons LLP, led by James Fawcett.
Keith Chapman, executive chairman at Excelsior Technologies said: “With Enact & Endless’ backing we have been able to establish the business as “best in class”, serving a portfolio of blue chip customers across the globe. The future looks very bright with the two businesses being an excellent product, operations and strategic fit.”
David Hathorn, chief executive of Mondi Group, said: “The acquisition of Excelsior supports the development of our Consumer Packaging business in high growth product applications. Its leading microwave steam cooking packaging technology complements and enhances our global food packaging offering.”
