Private equity firm ECI has led a buy-in/management buy-out (BIMBO) of plastics manufacturer Stewart.

The deal, which values the company at £17 million, also involves a partial roll-over of existing shareholders’ interests.

Having acted for Stewart for a number of years, ASB Law’s corporate finance team, led by Russell Bell and Helen Mead, acted for the existing shareholders in a complex and time-critical transaction that also involved the input of new shareholder managers, and ECI’s equity and initial debt contribution.

As part of the deal, Lee Mowle, the current owner and CEO, is to stay on at the business as managing director.

The company manufactures plastic products primarily for gardening and catering and has clients including Homebase, Wilkinson and Booker.

Mowle comments: ‘We now see lots of new opportunities for the business opening up in both our existing and new markets.’

Mead adds: ‘The structure of the transaction, a BIMBO, required a suite of Newco’s and structure documents, an SPA and a full due diligence completed in double-quick time.’

Led by technical director James Carlisle, RPS provided environmental due diligence to ECI, which injected the capital for the transaction. During the deal, RPS worked alongside other deal advisers to ensure a swift and commercially focused assessment in order to facilitate the transaction.’

Legal advice provided by:

Innovis House, 108 High Street
Crawley, RH10 1AS
Tel: 01293 603603

Environmental due diligence provided by:

RPS Group
14 Cornhill
London, EC3V 3ND
Tel: 0800 085 8384

Todd Cardy

Todd Cardy

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital. Connect with...

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