Flexible packaging manufacturer acquired in MBO

- Organic growth to be supported by acquisitions after MBO

 

- Business grown from £5m to £44m

 

Welsh-based international flexible packaging manufacturer Excelsior Technologies has been acquired in a management buyout from its North American shareholder, led by managing director David Moorcroft.

 

Excelsior designs and manufactures a portfolio of packaging products and supplies to a range of blue chip clients across the food and medical packaging sectors, including Birds Eye, Haribo, Premier Foods and SC Johnson.

 

Excelsior is a specialist in high-temperature packaging films and microwaveable packaging, supplying over 600 million microwave packs per year using proprietary technology for foods including vegetables, rice and prepared meals.

 

It is also an international leader in steam sterilizeable medical packaging.

 

In 1996, the business had a turnover of £5 million and was focused on point-of-sale clothing packaging.

 

Today, led by Moorcroft, turnover is forecast to hit £44 million, with further growth predicted through organic developments and acquisitions.

 

Excelsior is now an international business with operations in both the UK and USA, and exports to fourteen countries.

 

Headquartered in Deeside, North Wales, Excelsior employs over 200 staff and operates from four sites, two in Deeside, one in Lancashire and one in North Carolina.

 

The MBO was backed by equity firm Growth Capital Partners (GCP) and Bank of Ireland.

 

Moorcroft said: ‘GCP had a compelling offer and we were impressed with their track record of working in partnership with management teams to grow companies both organically and through acquisition.

 

‘It has already identified a target company and we look forward to working in partnership with them to fast track the growth of our business.’

 

Garrett Curran, who led the deal for GCP and now joins the company’s board, said: ‘In Excelsior we are backing an excellent management team led by David Moorcroft and are supporting the UK manufacturing industry.

 

Excelsior has invested heavily in its manufacturing capabilities and has built an impressive customer base. There are positive market dynamics for flexible packaging and growth will be driven by Excelsior's in-house product development capabilities, plus the significant cost and operational advantages it can offer over competitors.

 

‘The UK is seeing a resurgence in the niche manufacturing sector as overseas companies recognize the ability of UK manufacturers to be flexible and devise real and innovative solutions to customers' needs – Excelsior is one such manufacturer.’

 

Bank of Ireland provided working capital and asset based lending facilities for the deal. Its director David Chell said: ‘Bank of Ireland has supported Excelsior's manufacturing and export success for over five years now and we are delighted to be involved during this latest milestone.

 

‘The company has a robust outlook and we look forward to continuing our partnership with them.’

 

Read more on the flexible packaging market here

Read more on the European market here

Read more on mergers and acquisitions in PPW issue #3, 2012 (published in August)