Administrations - Betts Global acquired by lenders in pre-pack

Gresham-backed toothpaste tube maker Betts Global has been acquired by its lenders in a pre-pack administration after breaching its banking covenants.

In October 2007, Gresham Private Equity backed the secondary buyout of Betts from Permira, Royal Bank of Scotland and Bank of Scotland in a £110m deal (5 November 2007, page 33). Gresham and Betts' management invested a total of £35m in the newco alongside £75m of debt underwritten by CIT Capital Finance, GMAC, Glitnir and Nedbank. Since 2007, Gresham has reportedly injected a further £39m of equity into the company.

Colchester-based Betts was formed more than 150 years ago and supplies companies such as Colgate Palmolive, GlaxoSmithKline, Procter & Gamble and Unilever. The business produces printed laminate tubes for the oral healthcare market and operates from 14 sites in Brazil, China, India, Indonesia, Mexico, Poland, the UK and the US.

The business employs approximately 1,500 people; it has been reported that no jobs have been lost yet. Gresham has retained an interest in the company in the case that Betts re-emerges and becomes profitable again.

The company reportedly has group debts of £94.1m, consisting of £53m in bank loans and £39m in shareholder debts.

Paul Marson-Smith, managing director of Gresham, has been cited as saying that 14 of the firm's 15 investments are "performing well".

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