YORKSHIRE-BASED Birkby's Plastics, one of the biggest operators in the European plastics moulding industry, has been bought by its management.
The deal for the company, based in Liversedge, West Yorkshire, was led by managing director Ian Hunter, with funding from Lloyds TSB Commercial Finance.
The business, which employs 500 people and also has a technology centre in Detroit to suppor
t its work with the automotive industry, has been bought for an undisclosed sum from Japanese quoted group, Marubeni Corporation.
Founded in 1926, Birkby's is a pioneer of plastics manufacturing in the UK and specialises in the design, manufacture and assembly of plastic components for the automotive and specialist industries world-wide using state-of-the-art technology.
Among the products it makes are electronic throttle control pedals for diesel vehicles, hard drive casings for Hewlett Packard computers and parts for Xerox photocopiers.
Existing management, led by Mr Hunter, Stephen Harrison, operations director, and finance director Andrew Bullivant have purchased the company which has an annual turnover of £33m and a strong long-term order book following 18 months of investment in new technology and equipment.
Employing over 500 staff at its Liversedge facility and technology centre in Detroit, USA, Birkby's Plastics is well placed to continue its growth within the plastics industry.
"We have received strong support for the MBO," said Mr Hunter, who joined the company 12 years ago as a tooling engineer.
"Going forward, we will have one of the strongest balance sheets in the industry with net assets of over £18m.
"We will face challenges head-on and look forward to continued and profitable growth. We've got a very strong research and development culture and leading edge technology."
Birkby's has also appointed a new chairman, the experienced Tom Brown, who is currently chairman of the Sheffield-based materials technology company, Dyson Group, as well as several private companies, and a former group chief executive of United Industries and Fenner.
Christian Mayo, director with KPMG Corporate Finance in Leeds, who led the management advisory team, said: "Against a backdrop of continuing difficulties in the automotive plastics industry, it is refreshing to have been involved in a positive development.
"The deal brings together a team of individuals with extensive working knowledge of the company and sector, who now have the financial resources to secure a profitable future for the business. I wish them every success."
Peter Scaife, senior regional manager at Lloyds TSB Commercial Finance in Leeds, said: "The buyout will help put the business into a strong position from where it can capitalise on new market opportunities.
"We have worked hard with Birkby's to structure the optimum set of facilities to help them take the business forward."
The management team was also advised by Alan Greenough, of law firm Pinsent Curtis Biddle.
david.parkin@ypn.co.uk
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