Published June 9, 2009

GCP Acquires Wrap Film System

Growth Capital Partners have combined 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 CGC 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 an 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 CGC

“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 a 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 to achieve their future objectives as a director and shareholder.