Growth boost for chemicals firm
25 Feb 2015
Chemoxy, a speciality chemicals manufacturer based in Teesside, has been granted £20 million in funding to help finance future growth.
The company, which operates from two sites in Teesside, provides specialised manufacturing services to a range of large companies in the chemical and oil and gas industries.
The Business Growth Fund (BGF), which was established to help Britain’s growing businesses, supplied half of the £20 million funding. The Royal Bank of Scotland (RBS) matched this with an additional £10 million working capital.
Chemoxy is a well invested business with significant potential for growth
BGF investment manager Barry Jackson
Since it was acquired from Dow Chemicals in 2011 in a management buyout (MBO) led by chief executive Ian Stark and chief operating officer Martyn Bainbridge, Chemoxy’s turnover has risen from £34 million to about £50 million.
It has also developed its own portfolio of low-toxicity solvents used in environmentally friendly paints, industrial coatings and cleaning products.
With around 60% of the chemicals produced or processed at the two sites shipped to overseas markets, Chemoxy said it planned to use the new funding package to increase capacity, and expand its product and service range.
“Chemoxy’s management team has an ambition to grow revenue to in excess of £100 million by 2020,” it said.
Barry Jackson, an investment manager at BGF said: “Chemoxy is a well invested business with significant potential for growth in a number of different areas.
“We are delighted to now be a partner in the company and assist the Chemoxy team in achieving the next stage of growth. Teesside and the North East continue to demonstrate strong demand for growth capital with Chemoxy being our third investment in the last 12 months in the region.”
BGF has backed 26 British manufacturing businesses in the past three years, including VTL Group in Huddersfield.
Funded by five of the UK’s main banking groups, it invests between £2 million and £10 million per business in return for a minority equity stake and a seat on the board for a BGF director.
