Wells Plastics

Website:  wellsplastics.com
Sector:   Business Services  
Overview:  Specialist plastic additives manufacturer
Investment year 2011
Status Realised 
Headquarters Stone

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.

Key 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.

Working with Wells Plastics...

Investment process

We 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.

Growth process

Given the sector Wells Plastics operated in, the focus of the business was that of continual development of new products aimed at solving problems with plastics for other sectors. One of the key attractions to the deal was Well’s market leading “Reverte” technology which reduces plastic waste in the environment. As part of the deal, we supported the expansion of the R&D team as well as a £1 million factory expansion plan that increased capacity by 40%. In addition, we introduced an experienced Chairman with knowledge of the plastics industry to assist with the performanc of the plant.

Exit process

We structured a secondary buy-out that enabled the management team to continue with the Company.

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