Posted by Carly Roper on Wednesday 4 April 2012
A St Helens-based business which specialises in the supply of laboratory materials is expanding with a £300k mezzanine investment from MSIF through its Merseyside Loan & Equity Fund.
Chamber Members, P&R Labpak sell a wide range of laboratory equipment, chemicals and consumables from autoclaves, balances and vacuum pumps to beakers, test tubes and test kits. The company is also the Primary distributor across the North West and Yorkshire for the £3.5 billion plus turnover global leaders in laboratory supplies – VWR.
Clients include United Utilities, various industrial, food and analytical testing companies as well as local businesses Nutricia and Convatec.
P&R Labpak is run by managing director Nick Buxton who has overseen the business since leading a partial management buy out in 2007 – a deal which was also financed by MSIF.
Since then the new management has worked hard to make the business more efficient by bringing in new systems and moving to more suitable premises.
Mr Buxton said: “The business has grown steadily over the last couple of years and we need to diversify to keep the business moving forward.
“This latest investment will enable us to extend our service offering and allow us to penetrate new markets.
“We were unable to secure finance from the bank but MSIF stepped in and were willing to fund the full amount we needed. MSIF’s involvement is vital to our continued development and we are delighted that they will stay on as a stakeholder."
MSIF investment director Paul Humphray said: “MSIF has provided finance to P&R Labpak on three previous occasions and they have a good track record with us.
“The management team are very experienced and the business has a strong and well spread customer base. We are very pleased to be supporting their continued expansion.”
P&R Labpak employs 22 staff at its St Helens site. Current turnover is £4m and this is expected to grow to £4.5m during the next two years.
Andrew O’Mahony of Brabners Chaffe Street provided legal advice to MSIF and financial due diligence was undertaken by Jean Ellis of DSG. Alison Lonsdale of AB Corporate provided legal advice to P&R Labpak.
MSIF’s Merseyside Loan & Equity Fund provides funding between £50k and £2m. For more information visit www.msif.co.uk
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