Blagden Speciality Chemicals

MBO of Blagden Chemicals

A management team has acquired the Chemical Distribution Business of Blagden plc. Peter Counsell of Meta Corporate Finance led and structured the transaction on behalf of the management team: Graham Turton, David Wilcox and Frank Wilkinson. The business, which will be renamed Blagden Specialty Chemicals Limited, will operate from the existing offices in Westerham, Kent.

Peter explained: "Negotiations were protracted with the background of Blagden plc seeking a purchaser for the listed vehicle and the disposal of a number of other subsidiary businesses. The distribution business is the last to be sold and, subject to shareholder approval, is to be followed by winding up of Blagden plc."

Graham Turton, the Managing Director of Blagden Specialty Chemicals, said: "I am very pleased to be able to retain the Blagden name for our new company which will strive to live up to Blagden’s long history in the chemicals industry." Graham together with David Wilcox, Sales Director, will lead the service delivery to customers and principals alike.

David Wilcox, who joined the business when it acquired Marlow Chemicals, stated: "Blagden Specialty Chemicals will continue to provide the high levels of sales and marketing support services that its principals have come to expect and intends to develop new agencies to further improve its service delivery to its customers."

The transaction was financed by NMB Heller and Barclays Bank plc provided certain working capital and other facilities. The management, who currently hold 100% of the equity in the company, may seek to raise further equity finance as part of a buy and build programme.

Post script

In 2006, 6 years on from the MBO Graham Turton, Managing Director of Blagden Specialty Chemicals Ltd said "A lot of hard work has gone in over the last 6 years, particularly on pursuing our new strategy of focusing our activities on distributing speciality chemicals for niche markets in the UK and Ireland. Changes and improvements have also been made to the organisation. David Wilcox has retired and been replaced as Sales Director by Philip Randall. Steven Brown has joined as a General Manager of our Liverpool Distribution Centre, which has now been accredited as a COMAH Top Tier site. Several new Distributorships have been won over the last 6 years, most recently when Rohm and Haas appointed us as their UK Distributor for their polymer additives range".
 

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