A four-strong management team has bought out high pressure laminated board producer and distributor Bushboard Ltd in a £10m deal.
The Wellingborough-based company was sold to the consortium by aggregates specialist Henriksen International A/S of Denmark.
‘We were a unique operation within Henriksen,’ said Bushboard managing director Stuart White. ‘It decided to divest to focus on its core interests.’
Mr White headed the MBO team, which also includes production director Mike Varney, finance director David Campden and head of the company’s construction division Alan Davies. They have all invested in the business, and the acquisition deal, which was negotiated by Grant Thornton’s Cambridge corporate finance operation, has also involved the sale and leaseback of the 150,000ft2 premises to an institutional investor.
The main funding came from Lloyds TSB Development Capital and Lloyds TSB Commercial Finance.
Mr White added that Bushboard, which employs 140 people and turns over £17m, is trading successfully. It has two principal divisions. The first makes and distributes chipboard-based laminated worktops for kitchens, bedrooms and bathrooms, supplying specialist distributors, merchants and ‘key kitchen manufacturers’.
The second division supplies the commercial buildings market with cubicles and washroom products, also operating a turnkey installation service.
‘We’re in a very strong market position,’ said Mr White. ‘We’re one of the few independents left in the sector and we’re focused on offering a wide range of products when one of the key market drivers today is the customer demanding more choice. In worktops, for instance, we offer 550 different articles.’
As part of its development plans, he said, Bushboard is on the lookout for acquisition opportunities.