In this paper we will discuss the recent business deal made by HSBC Private Equity. In March 2008, it purchased the Britton Group, a manufacturer of plastic packaging and converted products, for 152.93 million dollars. Britton Group was previously owned by LloydsTSB Development Capital (LDC).
The HSBC Leveraged Finance also supported HSBC Private Equity to materialize the deal. In March 2008, HSBC Private Equity, a UK based company, disclosed their recent business deal with the Britton Group, a maker of plastic packaging. The former purchased the latter from LloydsTSB Development Capital (LDC), another private equity firm based in UK, for 152.93 million dollars.
Another investor in this deal was the HSBC Bank plc. Britton Group is one of the biggest manufacturers of plastic packaging and extrusion in Europe. It produces a huge amount of plastic film and converted products, almost 80,000 tonnes, every year.
The company has been divided into three divisions: Britton Taco, Britton Merlin and Britton Decoflex based in Cheshire, Lincolnshire and Hartlepool respectively.
The Clearwater Corporate Finance acted as an adviser of the deal. This is HSBC Private Equity’s second business deal in 2008. The first was the acquisition of Transmission and Distribution Group in mid-January. Through this deal, HSBC Private Equity set their plans for future expansion and Britton will be able to take the leading position in the market. Experts says that this deal is a result of ongoing collaboration between the plastic packaging industries and private equity firms across the world.
The present management team of Britton Group will be working together with HSBC Private Equity’s management people. The CEO of HSBC Private Equity made the agreement for the company and the CEO of HSBC Leveraged Finance acted as an underwriter. The CEO of HSBC Private Equity will be a part of Britton’s board of directors.