Private equity firm ECI has invested £12 million into Surrey-based Stewart Group in the form of a buy-in/management buy-out (BIMBO).

Private equity firm ECI has invested £12 million into Surrey-based Stewart Group in the form of a buy-in/management buy-out (BIMBO).

The deal values Stewart, a business which manufactures and supplies plastic moulded products for the gardening, home, catering and medical storage sectors, at £17 million.

Stewart has clients including Homebase, Wilkinson and Booker, and 600 independent garden centres.

As part of the deal, Lee Mowle, the current owner and CEO, is to stay on at the business as managing director of the gardening and catering divisions with a significant shareholding stake.

Mowle comments: ‘At Stewart, we have worked hard and successfully for the last eight years, first to run round the business and return it to growth.

‘We now see lots of new opportunities for the business opening up in both our existing and new markets.’

Mowle initially acquired Stewart in 2008, following five years as a partner at the company.

According to a statement, Richard Butler joins the company as chief executive officer, bringing with him ‘knowledge of the advanced technical plastics sector’.

Butler says, gardening and catering are ‘solidly growing markets’ driven by trends such as aging demographics and an increased focus on healthy eating.

He adds: ‘Stewart has reflected this by prospering through the recession, and the business is well positioned in its existing markets to continue to grow strongly.’

Ken Lindsay, director at ECI, comments: ‘Stewart is exactly the kind of business that ECI’s manufacturing team likes to back. It is a good, old fashioned, British manufacturing company that has moved with the times and developed a strong position in an attractive market, as well as earning strong customer loyalty.’