BGF injects £10m into Chemoxy

Following completion of the deal, the business will look to invest in its facilities over the course of four years in order to increase its capacity and product range.

The deal is BGF's second investment in the manufacturing sector in recent weeks, having injected £1.5m into portfolio company the VTL Group in January. It also marks the GP's third investment in the north-east of England in the past year.

Debt
Bank of Scotland provided a £10m working capital facility to support the deal.

Company
Headquartered in Middlesbrough, Teeside, Chemoxy supplies low-toxicity solvents for use in paints, coatings, and industrial and household cleaners. It also provides manufacturing services to clients from the oil & gas and chemicals industry.

The business, which was spun out from Dow Chemicals in 2011 via a management buyout, has increased revenues from £34m to £50m in the past four years. It recently added a second site in Billingham, Teeside, and employs around 130 people.

People
David Colclough, an investment director at BGF, led the deal alongside investment manager Barry Jackson. Ian Stark is chief executive of Chemoxy. Andy Killingback represented RBS.

Advisers
Equity – Ward Hadaway, Martin Hulls (Legal); PwC, Nigel Ward, Kevin Barnard (Corporate finance).
Company – UNW, Paul Kaiser, John Healey (Corporate finance); Bond Dickinson, Nigel Williams (Legal).

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• Topics
• Expansion
• UK / Ireland
• Industrials
• United Kingdom
• BGF (Business Growth Fund)