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MBO Saves Jobs at Plastics Moulder

Posted on: Thursday, 4 August 2005, 06:00 CDT

The future of a Worcestershire plastics moulding business and its 22 jobs have been secured following a management buyout by the founder's son.

Cattles Invoice Finance has part funded the MBO of MPC Plastics (Mouldings) in Redditch. The company was bought by a consortium involving the son of retiring managing director Derek Chapman.

The new firm MPC Plastics (Products) has a current turnover of pounds 1.5 million, supplying injection mouldings of thermo plastics and blow mouldings of plastic bottles to a number of UK clients including several recognised household names.

Among its products are bottle tops, plastic pieces for beer barrels, parts for lorry trailers and plastic sledges.

Gavin Chapman, director and son of Derek Chapman, said: 'MPC Plastics has been in the industry for 27 successful years, so I was excited to be able to seize the opportunity to restructure the company and drive it forward with co-directors Nick Smith, Peter King and Steve Walls.'

If the MBO had not gone ahead, the company faced closure or being relocated to another part of the country. Now it is expanding its range of products and looking to invest in new machinery.

Among the new products are plastic components for the medical industry.

Cattles Invoice Finance in Birmingham helped structure the deal as well as providing nearly pounds 1 million in asset-based financing.

Eric DeArmitt from Cattles said: 'Using an invoice finance facility is particularly effective when funding management buyouts and, with the capital provided, the team will be able to concentrate on growth of the business and the client base

Source: Birmingham Post; Birmingham (UK)

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