Gresham backs leading bottle manufacturer in £30m deal

Gresham Private Equity, the UK mid market private equity specialist, has provided a total funding package in excess of £30 million to support the future growth of Esterform Packaging (“Esterform”).

Esterform is a leading supplier of PET preforms and bottles to the UK beverage industry. It manufactures a range of plastic bottles for the soft drinks, alcoholic and speciality markets and has a particularly strong presence in the high growth markets of water, juice and smoothies. The business is focused on new product development and is driving the green agenda with new environmentally friendly material developments. Esterform is also well progressed in the development and commercialisation of a plastic beer keg as a replacement to the traditional steel keg, this presents a very strong growth opportunity in its own right.

Headquartered in the Midlands, Esterform has two manufacturing facilities in Tenbury Wells and Leeds employing over 200 people.

Esterform has a strong track record of successfully buying and integrating businesses. Since the business was founded in 1998 it has acquired Able Industries in 2001 and Petplas Packaging in 2005. The strong organic growth combined with these two acquisitions has transformed the business into a major player in its industry with revenues approaching £50 million.

Paul Franks, Director of Gresham in the Midlands comments “We are delighted to support the management team of Esterform in its next phase of growth. The business has had considerable success since its formation in 1998 and we are providing the funding to grow the business further and to take advantages of commercial opportunities in the sector as they arise.”

Mark Tyne, Managing Director of Esterform adds “The business is well poised for further growth in its markets. The support and financial firepower of Gresham Private Equity will enable us to invest in our manufacturing facility and provide the resource and capability to undertake further acquisitions in the future”

With Gresham’s support, the business will continue to grow through the acquisition and subsequent integration of related businesses. Further investment in its manufacturing capability will be made to keep the business at the forefront of its industry.

Ian Woodhead will join the board as Chairman. Ian has extensive experience of manufacturing businesses supplying the food and beverage industries, most recently having been the Chairman of Whitworths, the leading UK brand for healthy-based eating and snacking products.

Lloyds TSB Acquisition finance provided the debt for the transaction.

Previous Gresham industrial products deals include Just Trays, Minivator, Olaer, Altair and Page Aerospace.