City boss leads £129m company buy-out

Sep 5 2008 by David Holmes, Chester Chronicle

A CHESTER businessman has led a management buy-out of a company in a deal worth £129m.

Bob Ellis, 56, of Guilden Sutton, is behind the move which has seen Mostyn-based Warwick International bought by its management team in a deal backed by a London-based Close Brothers Private Equity.

Managing director, Mr Ellis, said: “We are very excited by the future prospects for Warwick International. We see significant growth and investment opportunities for the company as a result of this deal, particularly at our manufacturing base in Mostyn.”

The buy-out team was led by Mr Ellis, along with sales director Barry Tilby, finance director Steve Williams and operations director Doug Lovatt.

Warwick International is a global leader in the manufacture of oxygen-based bleaching systems for the detergents and biocides industries. Its core product is the key ingredient in many of the world’s leading detergent products, including washing powder and dishwasher detergents.

Established as a start-up operation at Mostyn in 1979, Warwick International now has annual sales of £180m. It exports 95%of its output to 60 countries worldwide.

The company also owns a growing network of niche chemical distributors based across Europe and Asia, including the recently acquired Malaysian distributor, GME. Warwick employs a total of 380, including 205 at Mostyn.

Mr Ellis added: “We hope in the future to expand our existing detergent manufacturing plant and invest in an advanced polymer technology facility, based on joint research and development with recently-formed technology company, Revolymer.”

Warwick International was put up for sale by US parent company, Sequa Corporation, which had been sold to private equity group, Carlyle, following the death of its owner.

Close Brothers Private Equity specialises in investments in the chemicals sector. Debt financing for the deal was provided by a bank consortium comprising RBS, Barclays, HSBC and Lloyds.

The managers who have bought Warwick International all have long-established careers within the company.

Bob Ellis joined the company in 1980, and has been managing director for the last decade. Doug Lovatt joined in 1984, Steve Williams in 1991 and Barry Tilby in 1994.

The buy-out is one of the biggest deals to be completed in the North West so far this year.