ECI acquires Stewart Group

The investor provided £12m for the transaction while the current owner and CEO Lee Mowle will remain as managing director and as a substantial shareholder. Richard Butler, who has experience of working in the technical plastics sector with aerospace and automotive manufacturers, will join as the group CEO. Butler was introduced to Lee Mowle through a mutual business acquaintance. ECI were brought in to the deal by corporate finance adviser Cameron Barney. The investor's knowledge of the manufacturing sector was said to be beneficial to winning the deal.

ECI is looking to support an acceleration of the company's product innovation strategy as well as targeted acquisitions of complementary product businesses. Equity for the transaction was provided by ECI 9, which raised £430m at final close in December 2008.

Stewart Group has previously been owned by Bridgepoint Capital, which acquired the company in December 1999. Lee Mowle became the owner of the business in 2003, along with a partner, after the business had become loss-making.

Debt
The investor has initially underwritten the whole transaction, though bank financing is currently being finalised. Which bank ECI is looking to partner with has not been disclosed.

Company
Stewart Group was founded in 1945 and is a manufacturer and supplier of technical plastic moulded products for the gardening, home, professional catering and medical storage sectors. Headquartered in Croydon, the company employs 75 people and generated a turnover of £15m in 2010.

People
Ken Lindsay and Eleanor Blagbrough led the deal for ECI. Ken Lindsay will also join the company's board of directors following the completion of the deal.

Advisers
Equity – BDO (Corporate finance); KPMG (Financial due diligence); Grant Thornton (Financial due diligence); Newton (Other due diligence); Tyler Mangan (Other due diligence); SJ Berwin (Legal); CIL (Commercial due diligence); Heath Lambert (Insurance due diligence); RPS Group (Environmental due diligence).
Vendor – ASB-Law (Legal); Baker Tilly (Tax); Cameron Barney (Corporate finance); Cavendish (Corporate finance).
Management – Eversheds (Legal).

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• Topics
• UK / Ireland
• Industrials
• Buyouts
• ECI Partners
• BDO Stoy Hayward
• KPMG
• Grant Thornton
• SJ Berwin
• Baker Tilly
• Eversheds