Rcapital backs MBO of scientific and laboratory equipment specialist
Rcapital has supported the MBO of Scientific and Chemical Supplies Limited, known as SciChem, providing working capital facilities to enable the business to accelerate its rapid growth and consolidate its market position.
SciChem is a market leading distributor of scientific and laboratory equipment, supplying education and industrial sectors in both the UK and overseas.
The former family owned business has traded for over 60 years and employs circa 90 members of staff from its headquarters in Wolverhampton, as well as satellite sites in Cork and Aberdeen. Rcapital has backed the incumbent CEO Paul Gill and provided a significant working capital facility to facilitate future growth, with ongoing support also being provided by existing lenders HSBC and Barclays Bank Plc.
Paul Gill, CEO, commented: “Having had the opportunity to acquire the business from the family owners, we looked for a partner who could support us in a short timetable to ensure we can capitalise on the immediate growth prospects. Rcapital quickly saw the opportunity to invest in and transform the business over the next few years, and delivered on their offer to support the MBO within two weeks. I am looking forward to working with Rcapital and the appointed non-executive directors to create further value in the business”.
Raj Mittal, partner at FRP Advisory, the business advisory firm, said: “We are delighted to have advised on this transaction. The new investment and expertise being provided by Rcapital will enable SciChem to move forward to a new chapter in its development. This is a great result for investment into Wolverhampton and the wider West Midlands economy.”
Chris Campbell, director at Rcapital, said: “We are pleased to have backed the MBO of SciChem, led by Paul and his team. Having been introduced to the opportunity only ten days ago, this is another example of Rcapital moving quickly to back a historically successful business and deliver a deal that works for all stakeholders. We are now looking forward to working with management to grow the business and take advantage of a strong pipeline of opportunities”.
Rcapital was introduced to the opportunity by FRP Advisory (Raj Mittal), with legal advice provided by Squire Patton Boggs (Russ Hill). Management and the vendors were advised by Gateley Plc (Dan French), with HSBC and Barclays being advised by Irwin Mitchell (Jon Bew) and Pinsent Masons (David Doogan).