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Packaging Company's Future Wrapped up in Management Deal |
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Wednesday, 7 January 2009 |
Infinity’s private equity fund has wrapped a seven figure management buyout/buy-in for Flextex Limited – a converter of polythene and supplier of bespoke flexible packaging solutions to UK-wide businesses.
The deal follows a decision by co-founding director Mike Martin to retire after 30 years in the industry. His decision resulted in a significant change in management structure, which led the company to find an appropriate buyer to take the business forward.
With an annual turnover of £6 million, Flextex has become one of the most successful companies in its sector. It was founded in 1985 by Mike Martin and Bill Bird, who originally operated from a small warehouse with only one bag-making machine.
Commenting on the buyout, Bill Bird, who will remain with the company, commented: “This deal will breathe new life into the company. Mark brings some very good ideas and a great desire to succeed. I am confident that Flextex will progress and we are all looking forward to greater success.”
New managing director Mark Davenport, who led the deal, added: “I am delighted to have completed the buy-in at Flextex. The company is renowned throughout the industry for its high quality products, flexibility and service levels.
“I am confident that we will secure long-term success for the company, its employees and customers. Completing a deal like this shows that, even in uncertain economic times, there are people who are willing to put their financial weight behind solid business opportunities.”
The deal was led, structured and arranged by Cassons’ corporate finance team and Manchester-based corporate finance specialists, Cole Associates.
Ashley Hayman, senior partner and head of corporate finance at Cassons, and Robin Gower of Cassons’ corporate finance team based in Manchester, acted as advisers for the Flextex directors. Funding for the buy-out was also provided by The Royal Bank of Scotland.
Nick Davenport at Turner Parkinson provided legal advice to the management buy-in team; Daniel Varney at Pannone provided legal advice to Infinity; and Stephen Hadlow of Shammah Nicholls provided legal advice to RBS.
The terms of the deal and financial details have not been disclosed. |
