The Business
St Neots Packaging is a manufacturer of paperboard fast food disposables and packaging products. Products range from sandwich boxes to hot drinks cups and fast food kids meal boxes and packs. The company has been at the forefront of new product design in its chosen markets to develop more environmentally sustainable packaging and to increase shelf-life of its customer products.
The business has two sites in Cambridgeshire to meet all printing and manufacturing requirements and also has a sourcing office in Hong Kong.
The Transaction
Endless acquired a significant minority stake in St Neots Packaging in April 2008. The company had grown quickly and the existing owners required a new partner that could support the business both financially and strategically as it entered its next phase of growth.
Value Creation
Since the transaction took place the company’s sales have increased by 15% per annum. The company has recently invested in a new state of the art manufacturing facility to increase capacity and to produce a new, innovative and environmentally friendly sandwich pack.
After a period of rapid entrepreneurial growth, Endless, in conjunction with the MBO team, has strengthened the management team with the appointment of a new Executive Chairman, Finance Director and Operations Director. These appointments have given the business a strong platform to meet the company’s ambitious growth plans.
Endless is working closely with the management team to shape the company’s growth strategy. In particular, the company continues to increase its penetration into the European market with both existing and new products. This represents an exciting opportunity to make a step change in size and profitability.
The Endless Difference
The Endless team completed this transaction in six weeks after introduction in order to meet the change in capital gains tax regime in April 2008, which was essential to the vendors. Such speed exemplifies the Endless difference in executing a deal at market leading speed. Endless has also used its Connections network of managers to help strengthen the management team as the business has grown.