One of Birmingham's wealthiest families has sold its business in a deal thought to be worth #100 million.
The equity from the sale of Yardley-based Europackaging to private equity firm MidOcean Partners will be shared between the firm's founder and chairman Abdul Majid and his sons Shabir and Afzal.
Although the family had refused to release the value of the sale, it is believed it could be between #170 million and #190 million.
The trio will also continue to own a minority stake in the business of around 20 per cent.
The group, which manufactures plastic and paper bags, employs 1,500 people – 200 of which are located at the firm's head office and warehouse in Birmingham. It also owns manufacturing sites in Malaysia, Turkey and the US.
Shabir Majid confirmed the family would continue to be involved in Europackaging strategy and said that the move had been designed to raise equity to invest in growth.
He said: "We will be involved on a strategic basis with the company, they will have new management which will work with the existing management.
"It was a personal family decision that we wanted to bring some new investment in to take the business to a new level. There are a lot of acquisitions we are looking to bolt on. We are all looking forward to it and all think it is right for the business."
Graham Thomas, partner of MidOcean, said he had been familiar with Europackaging through MidOcean's investment in in-store marketing company Bezier.
He added: "Under the stewardship of the current owners and an outstanding sales and management team, Europackaging has developed into a global "one-stop shop" for supplying and fulfilling packaging and other goods not for resale for leading retailers.
"We see enormous opportunity in extending the presence into all goods not for resale, using the impressive platform and network of the existing business."
Bill Ronald, the former UK managing director of Mars Confectionery and chief executive of convenience food group Uniq, will now take the role of chairman. Attila Balogh, who previously ran the international businesses of coffee shop chain Tchibo has been appointed chief executive.
Mr Ronald said: "MidOcean’s investment is recognition of Europackaging’s achievements in building the business to date, and of the development potential ahead.
"With world class manufacturing, innovation and procurement capabilities, the group is also a leader in addressing environmental concerns through re-use, recycling and production of fully degradable and bio-degradable bags."
Linklaters acted as legal advisor to MidOcean and DLA Piper acted as legal advisor to the Europackaging.
Europackaging's financial advisors were Europa Partners and the Birmingham and London offices of PricewaterhouseCoopers Corporate Finance.
In it's 32-year history Europackaging has built up an impressive list of blue chip customers, including Tesco, Sainsbury, ASDA, Carrefour, Somerfield, Greggs and Ikea.
But it has also faced controversy. In October, a Europackaging staff member received a #20,000 payout after a judge ruled that company sacked him because of his trade union activities.
The decision at employment tribunal was the end of a two-year battle between ex-employee Nadeem Afzal and the group's directors.