MIDLANDS NEWS / 21 JAN 2015
DERBYSHIRE LATEX MAKER CHANGES HANDS
Four D Rubber Company makes latex sheeting for the heathcare, fashion, dental, medical and industrial sectors. It was formed in 1964 and has facilities in Heanor and Sri Lanka, employing about 115 staff.
The company said there was "exciting potential" in its markets going forward as a result of the deal and vowed to create more jobs in the Midlands in the future.
Gogerty will lead the company as managing director alongside existing technical director John Britton and financial director Asher Lambert.
To support the transaction Santander provided a £1m term loan, a £500,000 invoice facility and £900,000 of growth capital as part of its Breakthrough Programme. Finance Birmingham provided £1.2m in mezzanine and equity capital.
"Four D is an exceptional business with products and capabilities that are virtually unique," Gogerty said.
"We have seen good international growth in demand for our materials in recent years, particularly from health and medical customers. Our aim is to continue and accelerate this growth with the right focus."
Clive Broadhurst, investment director at Finance Birmingham, added: "We are very pleased to be partnering with Richard and the Four D team in an expanding UK and international business that has been built and grown in the Midlands. We look forward to supporting their growth and expansion plans over the coming years."
The management team were advised by Richard Medd at Browne Jacobson and due diligence work was carried out by BDO, PMSI and Freeth’s.
I am always skeptical when finance acquisition specialists take over companies. I'm not sure what's going on here, perhaps some of the friends in the Midlands can comment if they've heard anything?