Sheffield Plastics Firm Sows Seeds Of Success With Management Buy-In

Sheffield's Global Plastics Solutions, has expanded its reach by acquiring Cornish firm Orchid Plastics. The deal was completed with the help of a group of Yorkshire-based legal experts and financiers - the FD Centre, accountants Hart Shaw and law firm Nabarro.

A cash injection of £700k was provided by independent Invoice and Asset Based Lender Venture Finance's Leeds-based team, enabling Managing Director of Global Plastic Solutions, Paul Fairhurst, to complete a management buy-in (MBI) of the company, which will continue to trade as Orchid Plastics.

Paul Fairhurst comments, "This was a fantastic opportunity and with the help of local businesses we've been able to seal the deal."

Cornwall-based Orchid Plastics specialises in rotational moulding of technical products for a diverse range of industries. Its products include buoys, emergency and environmental equipment, flotation devices, flood defences and even street furniture.

Fairhurst adds, "We were looking to buy into an established company and use their knowledge and reputation to start marketing our new design of ocean buoys. Orchid Plastics provided a great opportunity for us as it has grown from a small start-up to an internationally recognised and respected manufacturer of quality products."

New growth amid green shoots

Global Plastics Solutions will help strengthen Orchid's management team and open up new opportunities for growth. Expansion is planned in Cornwall as well as in the marine, pollution control and medical sectors.

To support the deal, Venture provided a funding package incorporating Confidential Invoice Discounting and Asset Based Lending against plant and machinery as well as funding via the Government's Enterprise Finance Guarantee scheme.

John Davis, Business Development Manager at Venture Finance, comments, "We are thrilled to be able to help local businesses in this way: working in partnership with a team of accountants, solicitors and financial advisers to deliver the best possible funding package."

Paul Fairhurst, comments, "Venture helped develop the ideal funding solution, giving us access to funds via Asset Based Lending over and above the Invoice Discounting facility whilst also freeing up working capital to help run the business post-acquisition."

SOURCE: Sheffield