Aerosol and chemical supplier in MBO

Oldham-based aerosol and chemical suppliers, James Briggs, has undergone a management buyout in a deal backed by Endless LLP.

Management take control of the business from US manufacturing umbrella Illinois Tool Works, and as part of the deal Endless will provide funding to invest in sales, marketing, infrastructure and IT systems.

The deal will see Jim Sumner, former chief executive at AIM-listed bus manufacturer Optare, join the firm as executive chairman.

Sumner will support James Briggs’ existing management team of managing director Mark Lyth and finance director Simon Tuley.

The business employs nearly 200 staff across two manufacturing sites in Royton and Chadderton where it designs, formulates and manufactures products such as paints, lubricants and polishes.

Managing Director Mark Lyth said: “ITW’s decision to sell James Briggs presented the management team with a fantastic opportunity to lead a buyout of a business that is industry-leading and an essential part of the supply chain to many of its key customers.

“The board is delighted that Jim and Endless are joining James Briggs for the next phase of development at a time when we see huge opportunities on the global stage.”

Mathew Deering, Investment Director at Endless, who led the deal for the firm, said: “We are really pleased to be supporting another historic North West manufacturer. James Briggs has increased sales and profitability in recent years but it had become non-core to its parent company and this was naturally constraining its ability to fulfil its potential.

“Jim Sumner’s track record and knowledge perfectly complement the existing management team as we aim for strong growth in the coming years.”

Jim Sumner added: “This is an exciting time to be joining James Briggs and the aerosol and chemicals industry. There is huge potential for the business to develop both its private label and branded businesses in UK and overseas markets.

“In addition, the capital being invested as part of the deal will improve the operational performance of the company and this, combined with investment in infrastructure and marketing, will allow the business to realise its full potential.”

James Briggs is the latest investment from Endless’s third fund, which was raised at £220m in summer 2011.

A team at KPMG’s Manchester office, led by partner Jonathan Boyers, advised ITW on the deal. Steptoe & Johnson (Farzana Rao) provided legal advice to ITW.

Squire Sanders (Giles Chesher) provided legal advice to Endless and tax advisory services were provided by PwC (Simon Viner and Stephen Woodhouse). Bridge Insurance provided insurance due diligence and Jim Sumner was advised by Simon Woolley of EOS Law.