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BGF exits Chemoxy

Investment news
22.07.2017.

BGF has successfully exited its minority stake in North-East chemicals manufacturer Chemoxy International Ltd.  The company has been acquired by a French based trade buyer, Novacap SAS, as it seeks to expand its Performance Chemicals division and geographical presence.

BGF invested £10m into Chemoxy in February 2015 and, as a minority partner, has backed the company’s management team since then. BGF’s funding supported growth in Chemoxy at both its Middlesbrough and Billingham sites. This has included acquisition of new customers, expansion of technical capabilities and further development of its proprietary product range, most notably ChemoxyCare, an emollient in personal care creams.

Chemoxy’s CEO Ian Stark and COO Martyn Bainbridge have reduced their stake in the company to a minority holding and will continue in their respective roles while BGF has exited its investment in full. The returns made by BGF will be reinvested to support more growing companies in the UK and Ireland.

Ian and Martyn acquired Chemoxy from US-based Dow Chemicals in 2011 and, together with the Chemoxy Team of scientists and engineers, have trebled its profitability since then, creating more than 70 jobs.

Through advanced manufacturing techniques, Chemoxy makes a range of low-toxicity products used in environmentally friendly paints, industrial coatings and cleaning products. More than 60 percent of the company’s sales revenues come from exports, including markets such as China and the USA.

Headquartered in Lyon, Novacap SAS operates 15 sites worldwide, employs 1,600 people and supplies to more than 750 customers. The company manufactures and distributes chemicals used in everyday products in the pharmaceutical, cosmetics, fragrances, food, home care and environmental services industries. It is a member of the United Nations Global Compact and adheres to the Responsible Care charter of the Federation of European Chemical Industries (CEFIC).

The acquisition of Chemoxy by Novacap will create a leading European player in solvents with a diversified, complementary portfolio of large scale and speciality solvents, unique in the European market. Combining the two businesses will also lead to mutually beneficial expertise in developing new end markets, products and geographies.

Ian Stark, Chemoxy CEO, said: “The completion of this deal marks an exciting new chapter in Chemoxy’s 150-year history. The acquisition represents an opportunity to further extend Chemoxy’s growing customer base and access to new markets. Like us, Novacap is focused on innovation, investment and sustainability. We are looking forward to exploring new opportunities with them.

“BGF has been a supportive partner that has helped to accelerate our growth and provided financial confidence. We have very much enjoyed working with them since their investment in the firm.”

Barry Jackson, BGF investor, added: “It has been a pleasure to support Ian, Martyn and the wider management team, who have continued to drive forward opportunities, innovation and ideas since our investment. Ian and Martyn are impressive leaders with a huge depth of knowledge of their industry and market.

“This transaction marks the end of a very positive journey for BGF with Chemoxy and we wish the Chemoxy management well in the next stage of the company’s development.”

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