investments


Wells Plastics

Specialist plastic additives manufacturer

February 2011

£3.8 million investment

www.wellsplastics.com

“KCP has a real understanding of our business and the factors that drive success. This understanding plus their collaborative and straightforward approach makes them a great partner to work with.”

Stuart Law, Finance Director | Wells Plastics

The business...

Staffordshire-based Wells Plastics Limited supplies additives to global plastic manufacturers and processors that are looking to modify the properties of a broad range of plastic and polymer products in order to provide a range of enhanced properties, such as UV resistance, flame retardancy and oxo-biodegradability. The end products are then supplied to a variety of sectors, including consumer, automotive, construction and agriculture.

The company operates out of factory and office premises near Stoke and 35% of its sales are exported.

The deal...

KCP backed two members of the management team to buy-out retiring shareholders and other non-management investors, with a £3.8 million investment in February 2011. The transaction structure gave significant equity to the two leaders of the MBO and also created an option pool to incentivise second tier management.

KCP value-add...

Since our investment we have:

  • Invested further to support the business through a difficult trading period
  • Supported a £1 million factory expansion scheme that increased capacity by 40%
  • Supported the expansion of the R&D team
  • Worked with management to improve the quality performance of the plant