Rcapital backs SciChem MBO
A Wolverhampton scientific supplies company aims to speed up its growth after being bought by its management in a deal backed by private investment group Rcapital.
The management buyout (MBO) of Scientific & Chemical Supplies Limited, known as SciChem, has been supported by Rcapital in a deal that provides working capital facilities to enable the business to accelerate its rapid growth and consolidate its market position.
No price tag for the deal has been revealed.
SciChem is a market leading distributor of scientific and laboratory equipment, supplying education and industrial sectors in both the UK and overseas.
The former family-owned business has traded for more than 60 years and employs around 90 people from its headquarters at Carlton House, in Bilston's Livingstone Road, as well as satellite sites in Cork and Aberdeen.
Rcapital has backed the incumbent chief executive Paul Gill and provided a 'significant' working capital facility to enable future growth, with ongoing support also being provided by existing lenders HSBC and Barclays Bank.
Paul Gill said: “Having had the opportunity to acquire the business from the family owners, we looked for a partner who could support us in a short timetable to ensure we can capitalise on the immediate growth prospects.
"Rcapital quickly saw the opportunity to invest in and transform the business over the next few years, and delivered on their offer to support the MBO within two weeks. I am looking forward to working with Rcapital and the appointed non-executive directors to create further value in the business”.
Raj Mittal, partner at FRP Advisory, the business advisory firm, said: “We are delighted to have advised on this transaction. The new investment and expertise being provided by Rcapital will enable SciChem to move forward to a new chapter in its development."
He added: "This is a great result for investment into Wolverhampton and the wider West Midlands economy.”
Rcapital director Chris Campbell added: “We are pleased to have backed the MBO of SciChem, led by Paul and his team.
"Having been introduced to the opportunity only ten days ago, this is another example of Rcapital moving quickly to back a historically successful business and deliver a deal that works for all stakeholders.
"We are now looking forward to working with management to grow the business and take advantage of a strong pipeline of opportunities”.
Rcapital came into the deal through Mr Mittal, from FRP Advisory, with legal advice provided by Ryss Hill of Squire Patton Boggs. Management and the vendors were advised by Dan French from Gateley plc, with HSBC and Barclays being advised by Jon Bew from Irwin Mitchell and David Doogan of Pinsent Masons.
