Financial services advisers in Birmingham have helped to arrange a £77 million buy-out package for one of the largest extrusion and plastic packaging manufacturers in Europe.
The Britton Group, based in Winsford, Cheshire, produces 80,000 tonnes of plastic film and its products include bags for fresh food produce and mail order goods, shrink wrap for multi-packs of food and drink and packaging for the medical, banking, hygiene and construction sectors.
HSBC Private Equity and HSBC Bank arranged the debt financing package and the deal, which supports existing management, provides for the future expansion of the group through organic and capital expenditure-led growth.
The Birmingham office of Clearwater Corporate Finance advised on the transaction which also sees the exit of mid-market private equity firm LDC, which backed a £42 million management buy-out in 2004.
Midlands law firm Browne Jacobson advised LDC and the management, whilst Ernst & Young’s Birmingham office provided corporate finance advice to the buyer.
Vendor due diligence was carried out by Deloitte in Birmingham. Legal advice from Eversheds, acting for HSBC Private Equity, and DLA for HSBC Leveraged Finance completed the Birmingham line up.
The existing Britton management team, led by chief executive Mike Clark who acquired the business with LDC backing in 2004, will remain in place and will retain a significant financial investment in the group going forward following the latest deal.
Mr Clark said: "We are very pleased to have HSBC as our partner in the development of Britton’s business and are confident that this partnership will enable the management team to further enhance Britton’s market leading position with capital expenditure-led, and organic growth."
Jon Hustler of Clearwater’s Birmingham office, which also advised on the original acquisition by LDC, said: "Britton Group is a first-class well managed business with plenty of scope for further growth.
"There are defined acquisition opportunities which would increase Britton’s presence in Europe, enabling it to further leverage its blue-chip client base and benefit from synergies and technology transfer."
Mahmoud Atalla, head of HSBC Private Equity (UK), led the deal for HSBC Private Equity and joins the Britton board.
He said: "We are delighted to be supporting Mike Clark and his team in the buyout. We look forward to supporting the team in the further growth of the business."
The deal is HSBC Private Equity (UK)’s second this year, having completed the buy-out of Transmission and Distribution Group in January.