Private equity firm ECI has completed a BIMBO (buy in/management buy-out) deal with plastics maker Stewart Group Holdings Ltd.
The deal involves ECI’s investment of £12 million in Stewart. ECI's Richard Butler, who has experience in the advanced plastics industry, will also join the company as group CEO. Stewart's current owner and CEO, Lee Mowle, is to remain at the business in the role of managing director of the gardening and catering subsidiaries.
The Croydon-based company makes moulded products for the gardening, catering, home and medical storage industries. Stewart Group Holdings has a 75-strong workforce and yearly revenues of £15 million.
The £12 million investment will allow Stewart Group Holdings to proceed with its plans to enter new markets, to build on its flourishing product innovations and look to make acquisitions of businesses making similar products in its existing focal markets.
Mr Butler commented, “Gardening and catering are solidly growing markets, driven by a number of long term trends including aging demographics, more leisure time and an increasing focus on healthy eating.”
“Stewart has reflected this by prospering through the recession, and the business is well positioned in its existing markets to continue to grow strongly.”
