The Harwood Private Equity division of Harwood Capital Management Group has completed a management buyout of pharmaceuticals and healthcare packaging company Medica Packaging in the UK from Sullivan Street Partners.
Gerard Harford, managing director of Medica Packaging, and finance director Mark Stokes, both of whom have been with the Cheshire-based business for a number of years, led the buyout.
As per the terms of the management buyout agreement, the remainder of the management team at Medica will continue in their existing roles with the firm.
“Harwood are a very successful investor with significant funds, and they have the financial strength and depth to allow Medica to continue to invest and grow to meet the ever-demanding needs of our customers,” Medica Packaging said in an official statement.
“We believe this presents a great opportunity to take the business to the next stage in its development and to build on the progress that has been made under the stewardship of Sullivan Street Partners.”
Founded in 1922, Medica Packaging became an autonomous business within the Wellcome Group in the 1970s, before being taken into private ownership in 1993, and then acquired by Benson Box in 2005.
Medica Packaging provides a range of specialist pharmaceutical and healthcare packaging services, including printed cardboard cartons and folded leaflets.
The business works with customers across the pharmaceuticals, biotech, clinical trials, generics, hygiene, medical devices, veterinary, vitamins, supplements and vaping sectors.
“2020 has been a challenging year with the novel coronavirus (Covid-19) pandemic and the significant reduction of capacity in the manufacture of folding cartons to the healthcare markets in the UK,” Medica Packaging said.
“We believe this is an opportunity for Medica to consolidate its position as the leading independent supplier into this sector, maintaining the focus on quality, value, and short lead-times.”
Medica Packaging added in the statement that it would be “business as usual in terms of services and it would continue to work with existing customers without any major changes.
This statement reflected an earlier pledge from Medica Packaging this month, saying it would continue to offer services throughout the latest period of Covid-19 lockdown. The UK locked down at the start of January and is not expected to open up again until the first few weeks of March at the earliest.
Harwood Capital Management Group, the organisation that operates Harwood Private Equity, has approximately £1.7bn of assets under its management, operating a number of private equity and investment properties.
by Rob Fletcher