Teesside-based Chemoxy secures £10m funding deal with RBS
Teesside-based Chemoxy, a contract chemical manufacturer, has secured £10m new working capital facilities from The Royal Bank of Scotland (RBS).
Chemoxy, which operates from two sites in Teesside, provides specialised manufacturing services to a wide range of large blue chip companies in the chemical and oil and gas industry.
The business has experienced rapid growth since it was acquired from Dow Chemicals in 2011 in an MBO led by chief executive Ian Stark and chief operating officer Martyn Bainbridge, increasing turnover from £34m to around £50m today.
To date, the team has invested more than £10m in new plant and acquired new land at their Billingham site in preparation for future growth. More than 130 people including chemical engineers and apprentices are employed by Chemoxy.
In addition to the £10m of funding from RBS, Chemoxy has also obtained a £10m growth capital investment from Business Growth Fund.
The business will use the new funding package to make further investments in capital and plant over the next four years in order to increase capacity, expand its product and service range and drive growth. Chemoxy’s management team has an ambition to grow revenue to in excess of £100m by 2020.
Ian Stark, chief executive, Chemoxy said: “This funding package supports our long-term ambitions for Chemoxy, with growth capital empowering us to expand the business without relinquishing control over the management or direction of the firm. At the same time, we are looking forward to drawing on new ideas and expertise.”
Andy Killingback, director, RBS Complex Transaction Execution, North, commented: “Chemoxy is a high regarded customer of RBS and having supported Management with the 2011 MBO, we are delighted to provide this funding package, alongside the investment from BGF, which will enable the business to further consolidate its position as the UK’s leading contract chemical manufacturer.’’
This was posted in Bdaily's Members' News section by Ellen Forster .
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