Channel Matrix Ltd – the company which invented the system that puts the creases into cardboard boxes – has been acquired by the fast-growing plastics products manufacturer, Plastics Capital.
Clearwater Corporate Finance initiated the approach and assisted Plastics Capital on its acquisition of Channel. Channel, which is based in Wellingborough, Northamptonshire, developed the world’s first creasing matrix over 40 years ago. The system, which is used to crease and shape cardboard into packaging, predominantly for food and other consumer goods, is still the most widely used today. The matrix is extremely durable and accurate and provides significant benefits in time and cost.
Channel, which had a turnover of around £5 million for the year ending 30 April 2007, exports to over 70 countries.
Plastics Capital, which floated on AIM in December 2007, is a plastics products manufacturer with annual sales of over £30 million. The group, which has been built up since 2002 through acquisitions by an experienced management team, has factories in Knaresborough, Yorkshire; Dartford, Kent; Wellingborough, Northants; Poole, Dorset; and Dunstable, Bedfordshire; plus an assembly factory in Thailand.
Its existing sudsidiary Trimplex is the only other UK-based global creasing matrix manufacturer.
Faisal Rahmatallah, chairman and chief executive of Plastics Capital, commented: “This is a significant acquisition for Plastics Capital as it not only increases the share we have in the creasing matrix market, but enables us to combine the strengths at Channel and Trimplex.”
Rob Britton, partner with Clearwater said: This latest acquisition complements Plastics Capital’s existing ownership of Trimplex and will allow it to benefit from exploiting the synergies between the two companies.”