Successful wrap for funding deal

Specialist additive masterbatch company, Wells Plastics Limited has agreed a new refinancing package with NatWest, to provide working capital and support the buy out of Lloyds Development Capital. This will see the business invest further in their growth strategy in a deal that was advised by Kevan Shaw

Wells, who have operated from Stone since 1984, is an independent specialist manufacturing business which focuses on providing technical solutions to the plastics processing industry worldwide. With over 25 years of development and manufacturing expertise in the plastics marketplace and with a global supply position, the company has a fully equipped laboratory which enables its technical staff to rapidly develop, evaluate and commercialise new products. Wells currently employ 30 staff across two sites in Stone, and operates 7 production lines 24 hours a day, 5 days a week.

The company underwent a management buy-out in 1997, and the existing management team led by Managing Director, David Nelson have now reduced the stake of their equity investor through this new funding agreement which is also designed to support the ongoing product portfolio development of the company. Recent initiatives undertaken by Wells include a new global strategic partnership with the Planet Green Bottle Company for the exclusive development and sales of oxo-biodegradable PET bottles which radically improves the environmental profile of the product range.

Commenting on the new funding and their plans for the future David Nelson Managing Director at Wells Plastics said:

“We are delighted to have completed this funding package, which whilst enhancing management’s shareholding in the company, more importantly provides a sound financial platform for the company to move forward We have managed to structure a secure place for the company in the global market by exploiting new technologies through the skill set we have built over a number of years We feel confident that we will be able to continue to grow the business as demand for our novel technologies gathers pace not only in our existing markets but also in the emerging economies”.