Cadman Capital Group adds to UK SME portfolio with specialist packager
Northampton, UK (03 August 2021) Cadman Capital Group (“Cadman”), the independent private equity firm, has completed its purchase of specialist packaging manufacturer, Cheshire Polythene. The deal is Cadman’s fourth acquisition of 2021 and marks the third packaging business to join the firm’s Opportunity Acquisitions portfolio. Founded in 1982, Cheshire Polythene provides film packaging and shrink-wrap products to its British industrial customer base. The firm’s achievements in recent years falls in line with Cadman’s Opportunity Acquisitions strategy, which seeks to identify businesses that operate in niche markets with strong balance sheets, a defensible business proposition and consistent performance over time. Under Cadman’s stewardship, Cheshire Polythene will focus on proactive business development, manufacturing and customer service excellence and further growing its customer base.
Facilitated by BACKS Enterprises, a portfolio company of the Cadman Capital Group, the acquisition adds to Cadman’s portfolio of successful packaging businesses, which includes Norpol Packaging and Burbridge Packaging, both of which were acquired by the Group in 2020. The addition of Cheshire Polythene will enable BACKS Enterprises to achieve a double-digit IRR over the course of the investment horizon.
Commenting on the acquisition, Stephen Bayliss, Investment Director at Cadman Capital Group said: “Cheshire Polythene is further evidence that considerable value is available in the UK SME market, which offers select opportunities to acquire strong assets with significant potential for future returns. We are pleased to welcome Cheshire Polythene to our high performing portfolio and look forward to expanding further as we continue to identify UK-based companies that will enable us to deliver capital growth over the long term organically. It remains our aspiration to grow the portfolio through further acquisitions.”
The purchase of Cheshire Polythene, which was supported by Howes Percival, follows previous acquisitions made by the Cadman Capital Group in 2021, with Conwy Brewery, Pookchurch Vineyard and Whittlesey Gun Shop all joining the Group’s portfolio over the last seven months. In line with its ongoing strategy to increase market share within the SME space, the Group continues to scout niche businesses in its core markets, to further build its portfolio and expand its offering.