Buyout leaves Omega ‘well-positioned’ to grow

A management team at a leading Gateshead-based injection moulding company has completed a strategic buyout, positioning the business for future growth and market challenges.

Omega Plastics Group, which operates across industrial, automotive, medical and FMCG sectors, has undergone a management buyout (MBO) led by existing shareholder Dave Crone. The transaction includes the buyout of investor and former majority shareholder Chris Thompson, as well as former chief executive officer and executive chair Craig Swinhoe.

With annual turnover rising from £10 million to £15 million over five years, Omega has expanded its moulding capacity and recorded strong performance during the pandemic, despite significant challenges. The buyout will see Dave take on the role of group managing director, joined by Gary Owen as group finance director and Ian Mallett as group operations director.

Dave Crone, the new majority shareholder and group managing director, said: “This is the first time Omega has been fully owned by those who work within it, and that makes this transition even more significant.

“It’s an exciting time for us, and our renewed focus on growth and innovation is strengthened by the full commitment of our leadership team to the group’s future.

"I want to congratulate Ian and Gary on becoming shareholders and co-owners alongside me. This reflects their confidence in the group’s future and commitment to its continued success. We are passionate about what we believe we can achieve together.”

Chris Thompson, who acquired the business with Dave in 2006, expressed his pride in the group’s journey. He said: “I’m really proud of everything we’ve accomplished over the last 18 years, and winning the North East Company of the Year award in 2017 was definitely one of the highlights.

“It showed how far we’ve come in terms of growth, innovation, and our impact on the local economy.  

“Now, as I hand things over to Dave, who has been a vital part of the business from the start, I feel this is the right time for the change. I’m confident that under the new leadership, the group will continue to thrive and keep growing in the future.”

The new ownership structure will include a share option scheme for heads of departments and the recruitment of a sales and commercial director to strengthen business development and growth. With the group also securing new funding arrangements, Omega is “well-positioned” to tackle market challenges and future growth opportunities.

Dave added: “The injection moulding sector has faced some challenges over the past year, but we are confident that with our new succession plan, a committed and invested management team, and fresh funding in place, we are well-positioned to tackle these challenges head-on.”

Omega Plastics Group and the MBO team were supported throughout the process by a number of key advisors. Legal advice was provided by Adam Rayner and Georgia Sproat at Muckle LLP, while tax advice was provided by David Baggaley and Stephen Harris at Clive Owen LLP. The team also received funding support from James Clinghan at Trusted Business Partner, with support from John Turnbull and Chris McGrath at Lloyds Bank.

Adam Rayner, partner at Muckle LLP, added: “Omega Plastics has already achieved fantastic growth, and we’re excited to see how the new management team will take the business to the next level.

“It was great to work with the team and the other advisors to support this fantastic transaction, which marks a big step forward in Omega’s journey. We look forward to watching the business go from strength to strength.”

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