Amber Plastics completes MBO
Chesterfield based manufacturer Amber Plastics has today announced the completion of a Management Buy Out led by Tony Bunting for an undisclosed sum, which has secured 40 jobs at the Sheepbridge manufacturing facility.
Funding to support the deal has been provided by RBS Invoice Finance and Royal Bank of Scotland and was overseen by Chesterfield-based Mitchells Chartered Accountants and Business Advisers and BRM Solicitors.
Established in 1978, Amber Plastics is one of Europe’s leading rotational moulders. Located on Broombank Road on Chesterfield Industrial Estate the business employs 40 staff. Tony Bunting has purchased the business from Derrick Round who will continue to work with the business in a consultative role. Tony Bunting originally joined the business in 1987 as a machine operator progressing to the role of General Manager three years prior to the MBO.
Amber Plastics has enjoyed significant growth in recent years, securing contracts in the domestic and overseas motorhome, health and construction markets. Tony Bunting is focused on driving growth further and has put in place a three-year plan which will see staff numbers increase by more than 25%.
A team of Chesterfield-based advisors and funders have supported the deal. RBS Invoice Finance represented by Kevin Burrows has provided a working capital facility which has released funds to assist the purchase of the business. This will also support ongoing cash flow requirements and the firm’s future growth strategy. The Royal Bank of Scotland’s banking team led by Simon Bellamy has also secured the day to day banking needs of the company. Tim Leeman from Mitchells Accountants and Business Advisers and Sarah Rowland from BRM Solicitors also advised on the completion of this transaction.
Tony Bunting, managing director, Amber Plastics, said:
“I am delighted that we have been able to secure all jobs within the company as part of the purchase. Having managed the business on the ground since 2013 as general manager, as well as worked alongside many of the team over the last 29 years, I know Amber Plastics is a strong position. It is both successful and profitable. Through the funding we have in place with RBS together with the team of advisers at Mitchells, the business is now committed to growing production to pre-2008 levels and significantly increasing the workforce over the next three years.”
Kevin Burrows, commercial business development manager, RBS Invoice Finance said:
“We are delighted to support Tony with the successful completion of the MBO and support a local business. Tony has been part of Amber Plastics for a number of years and played a key role in the management team’s recent growth strategy. He is committed to continuing the firm’s success and building the reputation of Amber Plastics across the UK. I am delighted to support them and work alongside a team of Chesterfield advisors on the deal. In particular I worked very closely with Mitchells and together we recognised an appropriate funding structure which would suit Tony the best. The working capital facility in place has reduced the need for additional debt funding and provided a flexible facility that will support his future growth plans.”
Tim Leeman, partner, Mitchells Accountants and Business Advisers, said:
“As Tony has been effectively running the business for three years he was the perfect purchaser. Together we were able to provide detailed information to enable RBS Invoice Finance to make a funding decision. It has been a seamless change of ownership and one that sees the business remaining owner-managed.
“It is particularly pleasing that the MBO has been wholly managed by Chesterfield-based organisations, showing that the town has the skills and resources to successfully complete deals of this size.”
Sarah Rowland, head of company commercial, BRM Solicitors said:
“Amber Plastics have been a BRM client for many years. My colleague Anna Cattee and I were pleased to advise them in this deal, and wish the company a successful future.”
Photo caption: Tony Bunting, managing director, Amber Plastics