Management buyout at Glasgow plastics firm wins backing after surge in sales
A VENERABLE supplier of plastic raw materials used in a wide range of industries has won backing from Glasgow-based financiers in a deal that signals confidence in the outlook for the economy.
Nevis Capital supported a management buyout of Hardie Polymers which was founded in Glasgow around 100 years ago.
Bartosz Komanski and Isy Ferguson led the buyout of the business from Fergus Hardie of the founding family, who will remain with the firm as chairman.
Financial details were not disclosed but it is thought that the deal placed a multi-million pound valuation on Hardie Polymers and that Nevis has acquired a majority stake in it.
The deal provides a big endorsement for Hardie Polymers given the uncertainty triggered by the fallout from the pandemic.
The company appears to have benefited from the recovery in activity that has followed the easing of lockdown measures.
Nevis Capital partner Brian Aitken said Hardie Polymers is busier than it has ever been. He noted that the firm has a leading position in the specialised market it serves.
The company sources polymers from around the world for supply to manufacturers working in sectors such as automotive, aerospace and electronics mainly in the UK. It was founded in Glasgow by Mr Hardie’s grandfather and great uncle in 1924.
The latest accounts for the firm filed at Companies House show it made a retained profit of around £100,000 in 2020.
Ms Ferguson said the support provided by Nevis would allow the firm to increase its stock holding and to expand its team to continue to meet customers’ requirements. The company has 13 employees currently. It expects to create around five jobs in coming months.
Hardie Polymers is the first business Nevis has added to its portfolio since it backed the Glasgow-based tank cleaning business Merkland Tank in November 2017. Dealmakers have faced challenges amid the fallout from the Brexit vote in 2016 and then the coronavirus crisis. Nevis is eyeing more deals.
John and James Pirrie founded Nevis in 2007 after the £62 million sale of their LCH Generators business to Speedy Hire. Mr Aitken was a dealmaker at PWC before becoming a founding partner in Nevis.