Liverpool-based Plastic Recycling Limited (trading as Centriforce), a manufacturer of damage prevention products made from recycled plastic for the utility, agricultural, building, and landscaping sectors, has been acquired by London based investment firm Rubicon Partners.
The deal provides a strong exit for Liverpool based fund manager River Capital achieving over 8 times return over the life of the investment and an IRR of 30%.
River Capital originally provided equity investment to support the management buyout of the business in 2014, since when it has experienced strong growth supported by increased expenditure on energy infrastructure projects, growing demand for environmentally friendly products, and ongoing innovation within the company.
Simon Carroll, who departs from his role as Managing Director of Centriforce as part of the transaction, commented:
“Our partnership with River Capital has been instrumental in accelerating the growth of Centriforce and allowed us to enhance our innovation capabilities. We’re proud of what we’ve achieved together, and I am sure the business will continue to flourish under its new owners and leadership team.”
Marion Savill, Portfolio Director at River Capital, stated:
“It has been a pleasure working with the team at Centriforce over the period of our investment, and supporting the development of the business through a period of significant innovation and growth. We’re delighted with the investment outcomes and wish Centriforce all the best for the future under Rubicon’s ownership.
“Centriforce represents a perfect example of the kind of high potential SME businesses we seek to back and work with through our private equity offering. We look to work with our investments as a trusted and valued partner, helping management teams to devise and deliver on a comprehensive value creation plan. This transaction marks our fourth successful equity exit of the year, further underlining our commitment to helping businesses across the North West to achieve their goals.”
Clearwater provided corporate finance advice to the shareholders (Michael Loudon, Zack Goddard, Andrew Royle) and Hill Dickinson legal advice (Elan Iorwerth, Joe Reade)