Chemicals company undergoes MBO to accelerate growth trajectory
A Wolverhampton chemicals company has undergone a management buyout as it looks to accelerate its growth trajectory.
Rcapital has supported the MBO of Scientific and Chemical Supplies, known as SciChem, providing it with the working capital facilities to enable the business to implement growth and consolidate its market position.
SciChem is a market leading distributor of scientific and laboratory equipment, supplying education and industrial sectors in both the UK and overseas.
The former family-owned business has traded for more than 60 years and employs around 90 members of staff from its headquarters in Wolverhampton, as well as satellite sites in Cork and Aberdeen.
Rcapital has backed the incumbent CEO Paul Gill and provided a significant working capital facility, with ongoing support also provided by existing lenders HSBC and Barclays.
Mr Gill said: “Having had the opportunity to acquire the business from the family owners, we looked for a partner who could support us in a short timetable to ensure we can capitalise on the immediate growth prospects.
“Rcapital quickly saw the opportunity to invest in and transform the business over the next few years, and delivered on their offer to support the MBO within two weeks. I am looking forward to working with Rcapital and the appointed non-executive directors to create further value in the business.”
Chris Campbell, director at Rcapital, said: “We are pleased to have backed the MBO. Having been introduced to the opportunity only ten days ago, this is another example of Rcapital moving quickly to back a historically successful business and deliver a deal that works for all stakeholders.
“We are now looking forward to working with management to grow the business and take advantage of a strong pipeline of opportunities.”
Rcapital was introduced to the opportunity by FRP Advisory (Raj Mittal), with legal advice provided by Squire Patton Boggs (Russ Hill). Management and the vendors were advised by Gateley (Dan French), with HSBC and Barclays being advised by Irwin Mitchell (Jon Bew) and Pinsent Masons (David Doogan).
