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GCP's flexible, patient capital enables Wrap Film Systems to raise funds to acquire Baco
Wrap Film Systems Ltd (WFS), one of the largest cling film and aluminium foil converters in Europe, backed by Growth Capital Partners in 2007 in a £21 million buyout, has acquired the business of competitor Baco Consumer Products (Baco) from US based Reynolds Consumer Products Inc in an off-market deal. The price was undisclosed.
Adrian Brown, managing director of WFS said: “A household name, Baco Foil is viewed by consumers as a premium quality product. This acquisition gives WFS access to the only recognised retail brand. We have a number of products which will develop the Baco name and reputation, providing us with a significant growth opportunity.”
Baco’s range includes manufactured food wrapping foil products and bought-in related items such as food bags, bin bags and plastic containers. It is also the only supplier of non-stick and recycled foil, for which there is no private label substitute.
Simon Jobson of Growth Capital Partners, who is on the board of WFS said: “Since our investment in WFS in October 2007, the management team, led by Adrian Brown, has delivered on plan by growing turnover by £10m to £36.5m. This has been achieved through growth in the European export market and UK retail market through its unique ‘Benedetti’ and ‘Wrapmaster’ branded dispensing systems.
“Our approach of providing flexible, patient capital with a modest level of gearing has allowed WFS to raise the necessary funds to acquire Baco.”
WFS has a number of blue chip customers including Bunzl, 3663 and Brakes. The Benedetti Dispenser is now being stocked in Tesco, Sainsbury’s, Asda, Morrisons and Waitrose.
Today, the majority of Baco’s sales are to key UK supermarkets. Founded in 1960, Baco was bought by Rank as part of their $2.7 billion acquisition of US business Reynolds Consumer Packaging in 2007.
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Contact details:
Jane Kirby, Equity Dynamics 07825 326 441
Corinna Osborne, Equity Dynamics 07825 326 440
Growth Capital Partners
Growth Capital Partners LLP provides structured equity, a combined equity and debt product, to the UK’s small to medium sized businesses.
It was first private equity firm in the UK to use structured equity to finance management buy outs. Its blended equity and debt capital structures are constructed to suit individual businesses wherever they are in their growth phase - exactly the right product for this part in the investment cycle.
During the last 10 years the firm has made over 20 investments including companies such as Tangerine the confectionery firm that makes Butterkist Popcorn.
Growth Capital Partners currently manages approximately £90 million of existing private equity investments. It has 8 companies in its portfolio including:
- Amor Group, IT software services for the oil and gas sector
- Blueberry Group, supplier and distributor of speciality foods
- Wrap Film Systems, cling film and foil converter for food service
- Eldapoint, provider of container handling and storage for shipping
- Killby & Gayford,specialist contractor focused on heritage buildings
- A-Gas, international distribution of speciality gases
- Tangerine, confectionery manufacturer
- Entec, multidisciplinary environmental consultancy
Growth Capital Partners typically invests £5m to £50m in management buy-outs, development capital and secondary or tertiary buy-outs.
The partnership is headed by Bill Crossan, who founded Close Growth Capital in 1999, Garrett Curran, who joined the firm in 2001 from PWC and James Blake who joined the firm from 3i in 2005.
Growth Capital Partners is authorised and regulated by the FSA.
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