Runcorn-based manufacturer acquired by management in significant MBO deal

Runcorn-based North West Roller Services Limited [NWRS], a manufacturer and distributor of consumables to the print industry, has undergone a significant management buyout deal as it prepares for the next phase of its growth.

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Runcorn-based North West Roller Services Limited [NWRS], a manufacturer and distributor of consumables to the print industry, has undergone a significant management buyout deal as it prepares for the next phase of its growth.

NWRS Sales Manager, Barry Dodgson led the transaction which has been funded by a £1.5m equity investment from MSIF’s, AFM-managed, ‘Merseyside Loan and Equity Fund’ alongside a debt package from ThinCats.

Established in 1990, NWRS manufactures a range of consumable items for the flexographic, gravure and lamination industries. Products include rubber covered cylinders and sleeves, manufactured fibreglass sleeves and laser engraved printing sleeves and cylinders used for the printing of food packaging, decorative wallpaper, textiles & security print. The business employs 30 staff.

The transaction follows the retirement of the previous shareholders and will see Non-Executive Director Nick Owen join the Board alongside Barry Dodgson, who will become Managing Director. The management team have plans to significantly increase revenue levels and are targeting export markets as well as new product offerings to do so.

Corporate finance advice was provided by Paula McGrath and Dan Rice of Brabners Deal Advisory, who sourced and negotiated the deal with the vendors. Following which Brabners Deal Advisory worked with the NWRS management team to structure the transaction and raise a substantial financial package to support the deal.

Daniel Hayhurst at Brabners provided legal advice to the buyout team. Legal advice for AFM was provided by David Carr at Napthens, and Moore and Smalley (Stephen Gregson) provided financial due diligence support.

Barry Dodgson, NW Roller MD commented on the deal: ““I believe this is a fantastic opportunity for the business to expand and grow especially with the added support and backing from MSIF, Brabners and ThinCats, I look forward to working closely with them over the coming years. We have a great workforce and a strong customer base; we now have to look forward to expanding our presence both here in the UK and further into the Export market.”

Mark Borzomato, CEO of AFM added: “NWRS has shown strong performance over a sustained period of time by working closely with its customers and providing high quality service levels. With over 18 years’ experience in the business, Barry has been a fundamental part of this performance and we are therefore delighted to have assisted him in acquiring the NWRS business. Working alongside Nick, we believe the business has considerable growth potential and look forward to being part of the next phase of the company’s development.

Paula McGrath, Brabners Deal Advisory said: “We are delighted to have advised Nick & Barry to deliver an MBO on an exciting and unique Business which facilitated a full retirement for the existing shareholders. We are keen to see how the Business evolves under the support and guidance of MSIF & Thin Cats.

David Parr, Director, Regional Business Development, ThinCats: “A long established and very well-respected business, North West Roller Services has an impressive history, and equally impressive plans for the future. We are delighted to have supported them with this MBO, and will be watching their future development with great interest.”

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