Wrap Film Systems Ltd (United Kingdom) - Nov 2007

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01 November 2007

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Close Growth Capital (CGC) has backed the £21m management buyout of clingfilm and foil converter Wrap Film Systems Ltd (Wrap) from Benedetti International Plc. CGC provided a combined debt and equity package totalling £15m to facilitate the deal which was supported by additional senior debt provided by Barclays. KPMG ran an auction process first introducing CGC to the opportunity in June. CGC took three months to complete the deal from exclusivity and cited the reasons for its success over other financial buyers were the funding structure it was able to offer which gave management a majority stake in the newco.

Company

Established in 1975, Wrap is one of the largest film and foil converters in Europe with annual turnover of more than £27m and profits of £3m. It produces a range of patented dispensing products for use in the catering, hospitality and retail sectors. The patented Wrap products have enabled them to capture a large share of the food service market with customers including Bunzl, 3663 and Brakes. Additionally, a retail version of the product has been rolled out to the cash and carry and retail sector and is now stocked in Tesco, Sainsbury’s and Morrisons. Wrap was acquired by Benedetti International Plc in 1995 which is owned by Scottish-based serial entrepreneur Giovanni Benedetti. The company is based in Telford and employs approximately 150 people.

People

Simon Jobson, Ashley Brady and Garrett Curran led the deal for CGC. Martin Hay arranged the debt package on behalf of Barclays. Adrian Brown is the managing director of the business.

Advisers

Equity - BDO Stoy Hayward, Mark Bringloe, Matt Copley, Stephen Green (Financial Due Diligence)Equity - Cobbetts , Nicola Frost, Robert Turnball (Legal)Management - Grant Thornton, Harvey Ingram, Joe Dyke, Peter Williams, Tony Dunn (Legal)Management - Grant Thornton, Joe Dyke, Peter Williams, Tony Dunn (Corporate Finance)Vendor - KPMG, Bruce Walker, Graeme Dunbar (Corporate Finance)Vendor - MacRoberts, Michael Kelly, Robert Burns (Legal)