Formula for success as funding package backs buy-in at foundry chemicals firm
A business which produces chemicals for the foundry industry for customers worldwide has undergone a management buy-in supported by a £1.3m debt funding package from Frontier Development Capital (FDC).
Eurotek Foundry Products specialises in resin binders, which are manufactured and blended to specific customer needs, and exports 70% of its production.
Established in 1993, the company employs 18 staff at its headquarters in Elland and has a European subsidiary in Poland.
As part of the buy-in Richard Catchpole, who has over 35 years’ experience in the chemicals industry and is the former CEO of Akcros Chemicals, will become chair.
The deal also gives GIL Investments, a specialist industrial investor, a majority shareholding and provides an exit for the founders.
However Dale Crystal, the current managing director, and Raymond Higgins, sales director, will remain with the business for the foreseeable future to help deliver its growth strategy.
Catchpole said: “I am happy to be joining Eurotek, which is an established business with a strong track record in the chemicals sector.
“The management team have done an excellent job in successfully navigating some of the challenges of recent years, such as the pandemic, Brexit and the war in Ukraine.
“I look forward to working with the team as we continue that journey and explore new opportunities to take the business forward.”
Simon Kelsall, investment director at Frontier Development Capital, said: “Eurotek has built an impressive export business and loyal client base and benefits from extremely high levels of customer satisfaction.
“Richard’s appointment will add further weight to the management team while the investment from FDC and GIL will provide additional working capital to support its future growth.”
The Wilkes Partnership LLP provided legal advice to FDC, while Gateley Legal advised the acquirers including GIL Investments.
Shoosmiths LLP advised IGF which provided invoice discounting facilities and AG Corporate Law acted for the vendors.
BSN Associates provided financial due diligence for the acquirers.