Investment firm Growth Capital Partners (GCP) has backed the management buy-out of Excelsior Technologies by way of a combined equity and debt deal.

Based in North Wales, Excelsior Technologies is a flexible packaging manufacturer, and supplies products such as microwave packs to clients including Birds Eye, Haribo, Premier Foods and SC Johnson.

The undisclosed deal sees an exit for Excelsior’s North American shareholders and follows a period of 16 years when the company grew its revenues from £5 million to £44 million. The firm now has two Welsh bases as well as operations in Lancashire and the US.

Garrett Curran, partner at GCP, says that part of the decision to get involved with the deal is the ‘excellent management team’ led by David Moorcroft.

He adds, ‘Excelsior has invested heavily in its manufacturing capabilities and has built an impressive customer base.

‘There are positive market dynamics for flexible packaging and growth will be driven by Excelsior’s in-house product development capabilities, plus the significant cost and operational advantages it can offer over competitors.’

Curran says that the UK is seeing a resurgence in the ‘niche’ manufacturing sector following the development that overseas companies now recognise the ability of UK manufacturers to be flexible.

David Moorcroft, managing director of Excelsior, comments, ‘GCP had a compelling offer and we were impressed with their track record of working in partnership with management teams to grow companies both organically and through acquisition.

Moorcroft also reveals that GCP has already identified a target company for Excelsior.