Private equity firm ECI has invested £12m in plastics manufacturer Stewart, the company announced today.
The BIMBO (buy-in/management buyout) deal values Stewart Group Holdings Ltd at £17m and sees Richard Butler join the company as group ceo.
Current owner and ceo Lee Mowle remains as managing director of the gardening and catering divisions, and retains a substantial shareholding in the company.
Three other senior managers within Stewart are also becoming shareholders in the business, while Ken Lindsay, who led the transaction for ECI with Eleanor Blagbrough, joins the board following completion.
Mr Mowle acquired the company with a partner in 2003, and took full ownership in 2008. During this time, he reversed Stewart's declining fortunes, generating strong growth through a focus on product innovation and customer service.
Despite the recession, the company says it has grown strongly on the back of positive consumer demand for gardening products. With ECI's investment, Stewart says it plans to accelerate its product innovation strategy, pursue targeted acquisitions of complementary product businesses in existing core markets, as well as expand into new ones.
Mr Butler said: "Gardening and catering are solidly growing markets, driven by a number of long-term trends including aging demographics, more leisure time and an increasing focus on healthy eating. Stewart has reflected this by prospering through the recession, and the business is well positioned in its existing markets to continue to grow strongly."
Mr Mowle added: "At Stewart, we have worked hard and successfully for the last eight years, first to turn round the business and return it to growth. We now see lots of new opportunities for the business opening up in both our existing and new markets, and I am delighted to bring in ECI and Richard as partners to help us do so."
Stewart, which manufacturers gardening products such as planters and propagators, employs 75 people and reported a £15m turnover in 2010.
Its customers include Homebase, Wilkinson and Dobbies, as well as more than 600 independent garden centres.