Print and packaging specialist in 3.5m management buy-out

Darley Limited, a UK print and packaging company, has undergone a 3.5 million management buy-out from parent company Adare.

The deal, which was backed by GE Commercial Finance, gives control of the business to a six-strong management team led by joint managing directors John Alton and Stewart Hughes. Darley was advised by Clearwater Corporate Finance.

Founded in 1827, Darley Limited is based in Burton upon Trent and supplies wet glue labels to the drinks industry. In 1860, Darley was the first company in the UK to produce labels for beer bottles and it now supplies worldwide to all of the major breweries including Coors, Carlsberg and Bulmers Limited.

It also provides packaging for the pharmaceutical and healthcare industries, with clients such as Johnson and Johnson, Boots and Axis-Shield, and is a leading supplier of patient information leaflets, which are distributed with all drugs and medicines. 

The company employs 75 people and has an annual turnover of circa 11 million.

GE Commercial Finance has provided a 3.5 million debt and equity package to support management in the buy-out.

Under the structure of the deal, Alton and Hughes and their team - finance director Amanda Barlow, sales director Stephen Blake, purchasing director Roy Cotton and production director Mick Hobster - will take a majority equity stake in the business. Clearwater Corporate Finance takes a minority stake.

Darley is one of a number of non-core businesses which Huddersfield-based Adare has recently disposed of namely, Kall Kwik, Prontaprint and C J Fallon.

John Alton said: ‘This is a very positive step for Darley and will enable us to build on our position as a leading packaging solutions provider and take the company forward to a new phase of its development. This will be achieved by expanding our portfolio of products and services, delivering a superior service, and ensuring that the business remains closely aligned to the evolving market.’

Gary Hyem, director with Clearwater Corporate Finance added: ‘Darley is a well respected company with a blue-chip customer base and a highly experienced management team. The business has strong potential for growth and the directors have a clear vision of how to achieve this. The buy-out and the new funding package will make them best placed to do so.’

Drew Johnson, regional director of GE Commercial Finance said: ‘We are delighted to be involved in the funding of this well established business and are confident that the management team will continue this success.’

Pictured left to right: Stewart Hughes (joint Darley MD), Gary Hyem (director with Clearwater Corporate Finance) and John Alton (joint Darley MD)