Solihull-based plastic packaging manufacturer Linpac Group has sold five non-core businesses to a private equity firm in a deal advised in the West Midlands.
The firm has sold the business units as part of a complex single transaction to funds managed by London-based Chamonix Private Equity.
The sale completed on New Year’s Eve with Ernst & Young’s M&A team in Birmingham acting as lead advisor to Linpac, led by director Mark Stanway.
The businesses – none of which are based in the Midlands - are Linpac Storage Systems, Linpac Environmental, Linpac Recycling, Intellident and Linpac Metal Decorating – previously collectively known as the Linpac ‘Speciality Businesses’.
Linpac Group executive chairman John Darlington said the firm was using the funds raised to pay down debt.
He added: "Even operations that are non-core require management attention, however, and the disposals have therefore released senior management time for use elsewhere in the business.
"It also means that we will be able to concentrate investment on our core activities in future."
Ernst & Young’s Mark Stanway added: "This was a complex transaction which demonstrates that, even in today’s challenging market conditions, a win-win result can still be reached for both buyer and seller.
"For multiple non-core disposals such as this, the right advice and a collaborative approach to structuring the transaction are essential in successfully achieving this outcome.
"The disposal of small portfolios of non-core assets by corporates is a trend we are seeing increasingly in the marketplace across a range of sectors."
"It’s fantastic to add this transaction to Ernst & Young’s credentials of successfully completing similar non-core disposals in the packaging and other sectors."
Chamonix provided Linpac with a solution to dispose of five non-core, unrelated business units in one transaction rather than undertake five separate disposals.
Chamonix partner Andrew Hartley said: "We are delighted to have completed this significant acquisition of five unrelated businesses to provide a holistic solution for Linpac.
"It has been a collaborative process where we worked closely with Linpac and its advisers.
"The transaction has a number of complexities and nuances which suit our expertise and experience.
"We feel there are many other corporate groups with non-core businesses we can work with to create similar solutions."
Marriott Harrison provided legal advice to LINPAC.
Debt funding was provided by HSBC Bank, HSBC Invoice Finance (UK) Limited and Investec Bank.
