Nov 2007 – Wrap Film Systems – Europe’s largest foil and clingfilm converter in £21 million MBO
Close Growth Capital acquires Wrap Film System for £12m
Close Growth Capital, the hybrid equity and debt finance provider, has backed the £21m management buy-out of Wrap Film Systems Limited (Wrap), one of the largest cling film and aluminium foil converters in Europe, from Benedetti International Plc. The management of Wrap will retain a majority equity stake. The deal marks the third successful completion for Close Growth Capital in two months following the recent acquisitions of Killby & Gayford and Eldapoint.
Established in 1975, Wrap is one of the largest film and foil converters in Europe with annual turnover of over £27 million, producing a range of patented dispensing products for use in the catering, hospitality and retail sectors. Wrap was acquired by Benedetti International Plc in 1995 which is owned by Scottish based serial entrepreneur Giovanni Benedetti. The company is based in Telford and employs approximately 150 people.
Simon Jobson of Close Growth Capital, said:
“Wrap has an experienced management team with a good track record of success demonstrated through the significant growth in the business over the past few years. Wrap developed a suite of patented dispensing products, which enabled them to grow substantially in the foodservice market where they now have a dominant market share. A retail version called the “Benedetti” has had significant success in the cash and carry market and more recently the retail sector.”
“The business is differentiated in the market by its established reputation, product innovation and good customer service. The company is a market leader and has close relationships with a number of blue chip customers including Bunzl, 3663 and Brakes. The Benedetti Dispenser is now stocked in Tesco, Sainsbury’s and Morrisons. Their unique product range enables significant opportunity for further growth in the UK and abroad.”
The MBO is being led by managing director Adrian Brown, who has been one of the main driving forces in the business. Since joining in 1999 he has grown the turnover from less than £5 million to over £27 million and has been instrumental in the winning of new accounts. Adrian began his career with Britvic Soft drinks and then moved to Bunzl Catering Supplies in 1992 where he held several senior management positions, before joining Wrap.
Adrian Brown commented:
“Close Growth Capital is a responsive and valuable investor and the team has continually offered the highest level of service. They clearly understand the competitive market of servicing the catering and hospitality industry and have offered an efficient and flexible approach. We look forward to driving the business forward and expanding geographically in the UK and abroad.”
Giovanni Benedetti will continue to assist the Wrap Film management team achieve their future objectives as a director and shareholder.
Close Growth Capital – Simon Jobson, Ashley Brady, Garrett Curran
Banking – Barclays Bank – Martin Hay
Management Advisors – Grant Thornton – Tony Dunn, Peter Williams, Joe Dyke
Financial Due Diligence – BDO – Matt Copley, Mark Bringloe, Stephen Green
Newco Legal – Cobbetts – Nicola Frost, Robert Turnbull
Management legal – Harvey Ingram – Mathew Harvey, Ateeq Ahmed
Vendor Advisors – KPMG – Bruce Walker, Graeme Dunbar
Vendor Legal – MacRoberts – Robert Burns, Michael Kelly
For further information, please contact:
Corinna Vere Nicoll 07825 326 440
Jane Kirby 07825 326 441
NOTES TO EDITORS
About Close Growth Capital
Close Growth Capital provides combined equity and debt funding to UK mid market companies through a distinctive single source approach. This includes finance for management buy-outs/buy-ins, companies requiring growth capital and secondary buy-outs, with a typical transaction size of £5million – £30million.
The investment takes the form of a tailor-made instrument combining the best elements of a secured loan with those of equity. The management team in an MBO or MBI typically retain a greater proportion of their company’s equity and benefit from significantly enhanced flexibility in the repayment of the funding package.
Recent transactions include backing the £32 million secondary buyout of A-Gas International, the MBI of Toms Confectionery Ltd, the acquisition of the confectionery arm of Burton’s Foods for an undisclosed sum, backing the secondary MBO of Killby & Gayford and acquiring a 30% minority stake in Eldapoint Ltd.
Close Growth Capital is authorised and regulated by the Financial Services Authority.