Finance Wales announces its largest investment this financial
year in Viscose Closures
31/01/2012
Businessman Gareth Rowlands has taken over as Managing
Director of Swansea-based packaging manufacturer, Viscose Closures
Limited (Viscose) thanks to a £5 million investment round. The
round included a £2.3 million equity investment
from Finance Wales, its largest this financial year, as well as
angel investment from a group led by Philip Roberts.
Rowlands now heads up Viscose’s new management team following
the retirement of its previous managing and finance directors.
Viscose has successfully carved out its niche in the £5 billion
food and drink packaging market, specialising in pilfer-proof and
tamper-evident closures and promotional sleeves. More recently, it
has built on its core product range to serve the alcoholic and soft
drinks, cosmetics and pharmaceuticals packaging markets.
The company currently exports a third of its total production,
with Europe and North America its main export markets. Plans are
now afoot to diversify the company’s range of packaging solutions
even further to attract new domestic and international blue-chip
customers.
“For me, buying into Viscose was an unmissable opportunity as
it’s a profitable, international business which has been trading
for over 100 years. It has stayed ahead of the competition by
adapting to the needs of its loyal customer base. The UK’s plastic
packaging industry is globally respected, particularly in food and
drink where there’s increasing demand for eco-friendly packaging,”
explained Gareth Rowlands.
Rowlands joins the company with a wealth of management
experience. This includes a successful stint at Europe’s largest
specialist glass manufacturer, Schott Glass, first as UK Managing
Director and then Divisional Chief Executive.
“The markets Viscose targets are expanding and we see great
opportunities for us in future. Finance Wales is a flexible
investor with a great deal of expertise. They understand how SMEs
operate and this is going to be invaluable to us. They’ve already
introduced us to our new Chairman, Keith Jordan, for instance,”
Rowlands continued.
David Birch the Senior Investment
Executive at Finance Wales who worked with Rowlands on the deal
said: “Our investment opens up a new chapter for this
well-established company. This was a complex equity deal and also
our largest investment this year. It was important to structure the
deal so that Gareth and the team have the capital they need to grow
the company.
“Equity investment can often be the right choice for a
high-growth business like Viscose as it can free up much-needed
cash to underpin a strategic business plan. We’re also
pleased to have introduced Keith Jordan as Chairman.”
Commenting on his new role, Keith Jordan said: “I hope with my
manufacturing background and previous experience of leading
private-equity backed MBIs that I will be able to provide valuable
support to the executive team at Viscose. I am very much looking
forward to working with them.”
Valued at over £3 billion, the UK’s plastic packaging market is
set to grow by an estimated 3% as more sustainable, lower-cost
production methods are developed.
Finance Wales was advised by Price Waterhouse Coopers (financial
due diligence and tax), Santis (commercial due diligence), The
Quinn Partnership (management due diligence) and Geldards LLP
(legal).
For more information, please contact:
Helen Walker-Smith
Tel: 029 2033 8149
E-mail: helen.walker-smith@financewales,co.uk