Sale of Wells Plastics to Key Capital Partners

Private Equity investor Key Capital Partners (“KCP”) has provided expansion financing to specialist additive masterbatch manufacturer, Wells Plastics (“Wells”), taking a significant minority stake in the company in a multi-million pound management buy-out (MBO) transaction.

Staffordshire-based Wells supplies additives to global plastic manufacturers and processors that are looking to modify the properties of a broad range of plastic and polymer products in order to provide a range of enhanced properties, such as UV resistance, flame retardancy and oxobiodegradability. The end products are then supplied to a variety of sectors, including consumer, automotive, construction and agriculture.

Wells was originally an MBO funded by Lloyds Development Capital. Following a refinancing in 2008, LDC had retained a minority stake. Nick has overseen a significant turnaround in Wells’ performance which has seen a sustainable 20 per cent annual growth rate over recent years, driven largely by the growth in demand for its innovative oxobiodegradable product, Reverte™, which speeds up the natural degradation process of plastic to produce water, carbon dioxide and biomass. Widely acknowledged as the most advanced product of its type in the market, it is used mainly in packaging, particularly for carrier bags and in agriculture, and can reduce the biodegrading time of plastics from centuries to years or even months

Commenting on the transaction, Nick Winks said “I joined Wells in 2005 and became Chairman in June 2009 and I’m proud of what has been achieved. I leave the business with a strong management team in place, and excellent growth prospects under its new owners. For the shareholders this represents an excellent recovery from its impaired value three years ago”. Nick Winks has resigned as Chairman immediately following the transaction.

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