Solihull-based Linpac Forced to Sell Business Units
Plastic and packaging company, Linpac Group, have sold five non-core business units in a deal with Chamonix Private Equity. The London-based Equity have managed funds in the transaction with Linpac as the Solihull group look to decrease its debt whilst simultaneously concentrating on it’s packaging operations.
The deal, completed on 31st December 2010 in Birmingham, saw Linpac’s ‘Speciality Businesses’ sold in a complex business transaction. Linpac Environmental, Linpac Metal Decorating, Linpac Recycling, Intellident and Linpac Storage Systems were all sold for an undisclosed sum managed by the Chamonix Company.
Executive Chairman of the plastic and packaging company, John Darlington, said the sale of the five units was appropriate to cut their debt. “Even operations that are non-core require management attention, however, and the disposals have therefore released senior management time for use elsewhere in the business” he told the Birmingham Post. He added “It also means that we will be able to concentrate investment on our core activities in future.”
The five business units had combined sales of over £70 million and employed over 400 personal. However the company stressed that there will be minimal impact on employees. “Relevant Linpac personnel have transferred to Chamonix, with their employment rights protected, and on substantially the same terms and conditions,” Linpac says in a recent news release.
The loss of these business units may not have been wanted by Linpac but it’s side-step to avoid debt has lead to the gain of others. Regain Polymers, who have acquired the Linpac Recycling unit, have announced their pleasure at the deal. General Manager, Ian Porter, said “This represents a fantastic opportunity for us to grow the business and improve the range of products we can offer and accept for recycling”.
The solihull-based Group now aim to concentrate investment on its core packaging activities in future.
- Ryan Millward
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Tags: Chamonix Private Equity, Ian Porter, Intellident and Linpac Storage Systems, John Darlington, Linpac, Linpac Environmenta, Linpac Group, Linpac Metal Decorating, Linpac Recycling, Regain Polymers, solihull
