Member of BTG Global Advisory
MBO for Chemoxy International

Ian Stark and Martyn Bainbridge have led the management buyout of The Dow Chemical Company’s custom processing facilities at Middlesbrough and Billingham, Chemoxy International Limited. The transaction completed on 31 December 2011.

Chemoxy International Ltd is one of Europe’s largest providers of custom manufacturing services to blue chip petrochemical and speciality chemical companies. In addition, the company manufactures a range of environmentally friendly solvents which are used in the latest generation of paints and cleaning products. The business has a large proportion of exports sales and employs over 80 highly skilled works across the two sites.

The divesture is part of Dow Chemical’s disciplined and ongoing approach to its portfolio management. Both Dow Chemical and the management team believe that the business has a greater opportunity to succeed with a buyer that is focused on operating and repositioning this business.

Ian Stark commented: “We are delighted with the opportunity to conclude the MBO of Chemoxy International. This is a business with a fantastic team of employees and we look forward to continuing to deliver exceptional service to our customers under the new ownership. It has been an eye opening experience for us and we would never have been able to do it without the excellent advice and strength in depth from Dickinson Dees and BTG Corporate Finance.”

Martyn Bainbridge commented: “With more than 50 years of combined experience in operating this custom processing business, we look forward to a great new chapter as an independent company, committed to the long-term success of our valued partners.”

The transaction had a number of complex aspects. Tom Fitzpatrick, partner at Dickinson Dees, comments: “Congratulations to Ian and Martyn for making it over the line. With many large multi-nationals shutting down manufacturing operations in the UK, it is great to be involved in a successful news story, preserving jobs and with exciting plans for growth.”

Shawn Bone and Simon Hewitson of BTG Corporate Finance led the transaction for management including negotiation of all key transaction terms and securing the funding for the transaction which was provided by The Royal Bank of Scotland.

Simon Hewitson of BTG Corporate Finance commented: “Ian and Martyn are a strong management team with a vast amount of experience in the chemicals market. It’s fantastic that we have been able to secure the MBO and we wish the team every success in taking the business forward under its ownership.”

David Wilkinson, corporate relationship director for RBS, stated: “It’s great to be supporting a North East manufacturing business in its growth plans. RBS is looking forward to a long and successful partnership with the team.”

Julie Palmer

About the author

Julie Palmer

Regional Managing Partner

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Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.

Julie is a member of the Insolvency Practitioners Association and the None Administrative Receivers Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

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