| Press Releases
16 November 2005
BURNLEY’S MRX IN BUY-IN, MANAGEMENT BUY-OUT
left to right : Ken Parker - MD , Apax Plastic Moulders,
Will Rawkins - a2e Venture Catalysts ( Corporate Finance Advisor),
Chris von Erheim - Sales Director, Apax, Jeremy Smith - Director,
Enterprise Finance Europe, Bill Ainsworth - Production Director
, Apax
a2e, Venture Catalysts Limited (a2e) the prominent Manchester
based investment boutique, has acquired a 76 per cent stake
in Burnley-based MRX, the contract moulding and houseware
manufacturer which has undergone a Management buy-in, buy-out
(BIMBO). Manchester’s Enterprise Finance Europe has
provided debt finance for the BIMBO and is providing ongoing
working capital.
Now renamed as Apax Plastic Moulders Ltd, the company, which
employs over 70 staff, principally services two plastic moulding
markets; contract moulding and houseware. The company’s
products are supplied to both a houseware distributor and
also to the retail market through stores such as Matalan and
Poundstretcher. Apax manufacturers moulded products to a number
of customers in different sectors and is a key supplier of
kerbside re-cycling boxes.
The deal will enable Apax, which is based near the M65, to
re-focus its operations activities to cater for high specifications
of the contract moulding sector, which in turn is anticipated
to lead to increased demand for the company’s products.
Ken Parker, managing director of Apax said: “We have
also identified new opportunities with a US plastic manufacturer
for new products aimed at the UK retail market. We will be
looking to invest in new high specification machines in the
next 24 months to enable the company to expand its expertise
offering and production capacity.”
Jeremy Smith, director with Enterprise Finance Europe in Manchester
said the deal, with a two week turnaround, required a flexible
and responsive funding solution. “This represents an
excellent opportunity for an experienced incumbent management
team to benefit from external support, strategic guidance
and financial strength to exploit market opportunities”
added Smith.
The deal was initiated, negotiated, structured and debt funds
raised by a2e Venture Catalysts Limited. a2e provided equity
for the deal alongside the management team.
Commenting on the deal, Amin Amiri, managing director of a2e
said: “Our success in acting as a catalyst to revitalise
‘old’ economy companies is now unrivalled. We
hope to create substantial shareholder value aiming for an
exit multiple of 20 on our investment in this case.”
Brabners Chaffe Street (Andrew Page) advised Enterprise Finance
Europe with Halliwells (Rebecca Grisewood) advising management.
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