KCP backs Wells Plastics MBO
PRIVATE equity house Key Capital Partners has taken a stake in a specialist additive manufacturer as part of a multi-million pound management buyout.
Leeds-based KCP has invested £3.8m in equity in Wells Plastics alongside investment from incoming executive chairman Paul Richardson and senior debt facilities from Natwest.
Wells Plastics, in Stone, Staffordshire, has seen annual growth of 20% fuelled largely by demand for its Reverte product which speeds up the time it takes for plastic to degrade.
The investment by KCP was led by investment director Mark Buttler and partner Andy Gregory. Mr Buttler said: “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.
“Our investment will enable the company to expedite its growth strategy and to move increasingly into global markets.”
Mr Richardson’s recent experience includes spells at KIK Corp and Cott Corp and joins sales aand marketing director Carl Birch and technical director Andrew Barclay, on the board of Wells while managing director David Nelson will also retain a role.
“The investment from KCP will enable Wells to exploit the major growth opportunity for Reverte, with a particular focus on targeting the Middle East, Africa and South America, where rapid development is leading to increasing pressure on waste disposal management, and will position Wells to become the UK’s largest exporter in this growth market,” said Mr Richardson.
“The company will also draw on the investment to market directly to consumers in order to increase awareness of the benefits of the product.”
Clearwater Corporate Finance provided advice and deal management services to the new team. Partner Jon Hustler said: “As a UK manufacturer with an innovative product suite and experienced management team, Wells is extremely well positioned for further profitable growth as it continues to exploit export opportunities in key global territories.
“I have no doubt that the company will prove to be a great investment for its new backers.”
KCP was advised by Chris Heatlie at BDO and Gregg Davison and Andy Phillips at Pinsent Masons. A team from the Leeds office of Cobbetts provided legal advice to the management team, while the exiting shareholders were advised by Simon Woodings at Beswicks Solicitors.
