Endless completes first deal from £164m fund

BUYOUT and turnaround firm Endless has made the first investment from its debut £164m institutional fund by investing in a packaging firm.

Leeds-based Endless has taken a significant minority stake in St Neots Packaging for an undisclosed amount.

Endless, which was launched by former Ernst & Young advisers Garry Wilson and Darren Forshaw, two years ago, has backed the existing owners and management team, Gary Orsman and Michael Kearns, in a deal to support the company's expansion plans.

St Neots is a specialist print and packaging company, based in Cambridgeshire, supplying into the fast food and retail sector.

The business manufactures sandwich packs, fast food containers, food packaging and children's meal promotions, with a focus on using environmentally friendly materials. Its customers include Tesco, Morrisons and KFC.

Managing director Mr Orsman, said: “We are delighted with this new investment and are excited about the benefits a partnership with Endless will bring. I was surprised and impressed with how quickly they moved to secure this deal which has meant minimum disruption for the business.”

St Neots was set up in 1994 by Mr Orsman and Mr Kearns to capitalise on the increasing demand for custom print and value add packaging.

The business has grown to a turnover of £19m generating profits of more than £3.5m on the back of its high quality product ranges and innovative designs. The new investment will support St Neots in its growth ambitions both within the UK and across Europe.

Chris Clegg, Endless investment director who led the deal, commented: “This is a landmark deal for Endless being the first transaction from our new fund.

“In the current economic climate many financial institutions are lacking the confidence to do deals. These conditions are presenting us with some excellent opportunities such as St Neots. This is an exciting time for the business with some new customers, markets and environmentally-friendly products coming on stream. We are delighted to back Gary, Mike and the rest of the management team in the next phase of growth.”

HSBC provided acquisition and working capital facilities. Endless was advised by Ingram Forrest (Don Gray) with Ernst & Young (Ian Robinson) providing financial and commercial due diligence.

Debbie Jackson at Walker Morris in Leeds provided legal support to Endless with Vincere providing finance department due diligence.

Mr Orsman and Mr Kearns were advised by Grant Thornton and Wollastons.