Two financial firms assist in a management buyout of Centriforce Products.
Merseyside Special Invest Fund (MSIF) and NatWest bank have funded the management buyout of recycled plastics manufacturer Centriforce Products Limited, based in Liverpool, United Kingdom.
Centriforce, established in 1976, says it is one of the largest independent producers of recycled plastic products in the U.K. and employs 115 at its Liverpool plant.
The company reprocesses plastic scrap into new products such as outdoor furniture, boardwalks and fencing. Plastic scrap sources include industrial scrap, post-consumer plastics and retail plastic scrap.
The management buyout was led by Centriforce’s Managing Director Simon Carroll and Finance Director Mark Lloyd, both of whom have also invested as part of the transaction.
Corporate financial advice on the deal was provided by Paula McGrath, a partner at the corporate advisory firm Brabners Stuart, who worked with the management team to originate the transaction. In addition to MSIF’s equity investment, Brabners Stuart also supported the raising of a financial package, including loan and other facilities from NatWest Structured Finance to fund the buyout, with the Royal Bank of Scotland providing working capital facilities.
“Centriforce Products has enjoyed good growth in recent years by working closely with its customers to develop new products and processes,” says Carroll. “We felt now was the right time to prepare the company for the next phase of its growth and have a number of exciting plans for product development and investment.”
“Centriforce is a long established Merseyside company and a significant local employer. It was important for us to take the time to find the right partner to work with. MSIF’s local presence, investment approach and ability to actively support our growth plans gives us confidence that they can help the company to continue to prosper over the coming years,” Carroll adds.
“The recycling industry is known for being a tough business, but has grown significantly with increased awareness of environmental issues, advances in how waste can be manufactured into quality products, and rising landfill costs,” says Mark Borzomato, MSIF’s investment director.
“Centriforce is at the forefront of innovation in manufacturing products from plastic [scrap] and has secured contracts with blue chip clients in the U.K. and abroad,” Borzomato continues. “Simon (Carroll) and Mark (Lloyd) have a combined 18 years’ experience within the business and have overseen a period of significant expansion. We believe the growth potential for the business is substantial and we look forward to being a part of the next phase in the company’s development.”
“I’m delighted to have worked with Mark and Simon on this from the beginning and to have secured an attractive funding deal to enable management to continue the development of a successful business on Merseyside,” says McGrath.