Lancashire-based Flextex has been bought by new managing director Mark Davenport and the firm’s existing management for a seven-digit figure.
Lancashire-based Flextex has been bought by new managing director Mark Davenport and the firm’s existing management for a seven-digit figure. Private equity house Infinity Asset Management took a minority stake in the packaging business with debt provided by Royal Bank of Scotland.
The £6 million turnover business produces packaging and polythene bags for packaging merchants. It was founded in 1985 by Mike Martin and Bill Bird, who originally operated from a small warehouse with only one bag-making machine.
The buy-in will enable founder Martin to exit and retire after 30 years with the business.
Bill Bird, who will remain with the company, said: “This deal will breathe new life into the company. Mark brings some good ideas and a great desire to succeed. I am confident that Flextex will progress and we are all looking forward to greater success.”
In December, the Manchester buy-out house took a majority stake in Tyne and Wear-based Goldshield Electronic Security, a designer, installer and maintenance provider of electronic security, surveillance, communications and control systems, for £2.8 million.
Daniel Finestein, managing partner of Infinity, said: “It’s a steady business, which isn’t affected by the recession.”