Learoyd Packaging has been acquired in a management buy-out from API Group for £1.5M.
Learoyd, which employs 128 people, has been loss-making in recent times and was considered a non-core activity by API.
The recently appointed managing director, Allan Ferguson, who led the MBO, commented: “The team firmly believes there is a strong future for this business and for its employees. This confidence is based upon an ability, as a stand-alone business, to be in control of our own costs while, at the same time, seeking out more attractive business from our customers, both old and new.”
Learoyd prints and manufactures flexible film products for the packaging industry. Its products can be found in most supermarkets, pharmacy and clothing outlets, and it also supplies products to the cash-in-transit security market.
The management team financed the MBO and by Barclays Bank, which provided term loan and invoice finance facilities. The MBO team was advised financially by the Corporate Finance Team at PKF, Manchester, and legally by the Commercial Team at Weightman Vizards.
“The new impetus given to the business by the arrival of Allan Ferguson can already be clearly demonstrated,” comments PKF Corporate Finance partner Clive Brook. “It was this improvement in performance which enabled Barclays to finance this MBO on a debt-only basis.”