A Scunthorpe construction materials manufacturer has been bought out by an international investment house keen to expand operations.
Premier Sealant Systems has been acquired by recently-launched venture capital and private equity firm Red Coast Industries, from the two remaining founding directors, John Burns and Peter Duffy.
The company has produced profiled foam fillers and supplied core sealing products used in the roofing, cladding, glazing, coldstore and maintenance sectors since it launched in 1994. It has forged strong working relationships with the nation’s largest roofing manufacturers and contractors, with the 30-strong team - led by managing director Stewart Morgan for the past five years - having delivered a strong period of growth.
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The undisclosed deal has been backed by specialist bank Shawbrook, with working capital provided alongside acquisition funding to maintain the upward trajectory of the Foxhills Industrial Park business.
Mr Morgan said: “This deal marks an exciting new stage in the evolution of our business. For over 20 years we have prided ourselves on producing high-quality goods for the UK’s biggest roofing manufacturers and contractors. Our approach and commitment to providing industry leading service, quality and knowledge has helped us become the nation’s leading supplier of core sealing products.
“I would like to extend my gratitude to the team at Shawbrook who offered unwavering support from day one and delivered a funding package unmatched in its speed and flexibility. We are very much looking forward to working with both Shawbrook and the team at Red Coast going forward to further propel our growth.”
Red Coast, led by Omar and Yossuf Albanawi, was spun off last year from Dubai-based Banvest, a family-run investment group. It aims to identify opportunities within the industrial sector where it can utilise its team’s expertise to add direct value. Premier is the first acquisition. The two parties were introduced by Prodipta Bhattacharya, managing director at US Capital Global.
Matthew Fannon, director of corporate lending at Shawbrook, said “It was a real pleasure to work with Stewart, Omar and Youssuf on this deal and we are delighted to have been able to put together a strong funding package which will not only support Red Coast’s acquisition, but allow Premier to build on its already stellar record of growth. Premier is already an industry leader in the core sealing space and is led by an experienced management team with a clear vision and strong foundational commitments to providing excellent products. We look forward to working with them going forward.”
Rob Fawke at Gunnercooke acted for Shawbrook on the deal and James Killing and Josh Davison from DSW conducted the financial due diligence on the deal.
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