Lancashire Chemical Works

www.lancashirechemicals.co.uk

Transaction Type: MBI
Status: Current Investment
Sector: Chemicals
Investment Date: October 2007
Deal Size: Undisclosed

Endless Contact: Stephen Harrison

BACKGROUND

Lancashire Chemical Works Limited (“LCW”) is a £5 million turnover business, based in Glossop and employing a workforce of 40 staff.  LCW specialises in the manufacture of chromium based chemicals and providing Toll Processing services, including spray drying and vacuum drying.

LCW was first established in 1937 as a manufacturer of chromium chemicals for the leather tanning industry in the UK.  Since the decline of the tanning industry the business has successfully repositioned itself by developing a number of niche chromium chemicals for use in a wide range of industrial applications including, chemical catalysts, metal plating, dyestuffs, oils, paints and lubricants.  In most cases LCW is one of only a small number of manufacturers in Europe with the expertise and capabilities to produce these products and the wide range of applications for its products reduces the businesses exposure to any one market sector.

Since its establishment LCW has also developed a highly successful Toll Processing business.  Toll Processing is the name given to a number of methods that are used to convert liquid compounds into dry form.  These processes have a wide range of uses in a number of different sectors, from creating freeze dried coffee and milk for the food and drink sector to processing complex chemical compounds for use in the industrial and chemical sectors.  LCW has the capability to do this by a number of methods including, spray drying, vacuum drying, fluid bed drying and spray cooling, all dependant on customer and product requirements.  LCW is one of the largest independent Toll Processors in the UK and its competitive advantage lies in its technical expertise and the capacity of its plant, which enables it to provide a flexible and responsive approach to its customers’ needs. 

INVESTMENT COMMENTARY

Endless has acquired LCW in a management buy-in led by Richard Sykes.  Richard has over 20 years experience in the chemical sector and has worked closely with LCW as a customer of the business during that time.

The business has been owned and run by the Hene family since its establishment.  The strategy under Endless ownership is to grow the business significantly and utilise its spare capacity through the development of new products and the development of new markets in the UK and overseas for the businesses existing products and services.  This strategy will be achieved through our investment, the introduction of new management and the development of the commercial function within the business.

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