Blackburn-based Silicone Engineering, a division of Meggitt PLC, is aiming to become the number one silicone rubber processor in Europe after undergoing a £2 million management buy-in.
The MBI has been led by Dennis Beadman (42), formerly managing director of the company and Barrie Warren (48), newly appointed sales director who was previously head of sales in Northern Europe for GE Bayer Silicones – a division of General Electric, USA together with Peter Nuttall (52) who takes on the role of finance director and was previously financial controller of the company pre-MBI.
Funding for the MBI has been provided by leading structured finance provider NMB-Heller in the form of a package of loan and receivable facilities along with bad debt protection.
Silicone Engineering, with over 100 employees, is the UK market leader in the manufacture of silicone products. The business occupies a purpose built, 60,000 sq ft factory on Greenbank Business Park in Blackburn.
With over 1,400 customers, it buys base silicone and mixes this with various other chemicals and fillers to produce a compound. This is then processed and heated to produce sheet, cable, extrusion or moulded products. Its customer base spans a wide range of industries including domestic appliances, automotive, food & beverage handling, aerospace and mass transit.
Meggitt PLC is disposing of the business as part of its strategy of focusing on its activities in the aerospace, defence and high value sectors.
Advising the MBI team were the Manchester office of Clearwater Corporate Finance who led, structured and arranged the deal.
Dennis Beadman, managing director said the deal will see a more focused and committed approach to Silicone’s many valued customers. “As an independent operating company we will be able to concentrate on our commercially orientated market, providing an enhanced service to our customer base.
“We have an excellent management team in place and a strong and committed workforce. We are looking forward to the challenges ahead and becoming number one in Europe.”
Philip Nuttall, principal with Clearwater Corporate Finance commented; “The deal represents a fantastic opportunity for Dennis and Barrie to acquire a business with some exciting growth opportunities which between them they have the necessary skills to take full advantage of.”
Assisting Philip Nuttall at Clearwater was manager Peter Lee.
The team from the finance providers, Stockport-based, NMB-Heller were John Bagley together with Mark Shackleton who comments; “With Silicone Engineering’s impressive track record and plans for the future we are delighted to be lending support.”
Legal advisers to the MBI team were Nick Fielden, Adam Kaucher and Simon Worrall of Cobbetts.