Medical product manufacturer undergoes private equity-backed MBO
Mon, 20 May 2024 | MBO/MBI
A medical product manufacturer with operations in Worcestershire and County Durham has undergone a management buyout (MBO) backed by a private equity investment.
Entaco, which is based in Redditch, has been taken over by its senior team, with the deal supported by a £1 million investment from private equity firm Traditum. The buyout was led by Managing Director Steve Brown, who will now take over the role of group Chief Executive.
Matthew Chaloner has also joined the group’s senior executive team as Chief Financial Officer, having previously spent 12 years at engineering group Howle Holdings. Entrepreneur Alistair Needler and Richard Topliss, a former senior banker at NatWest, have also joined as non-executive directors.
Entaco has roots stretching back more than 200 years and comprises three divisions: Redditch-based John James Needles and Entaco Medical Devices, and Redditch Medical, which is based in County Durham and specialises in providing cleaning chemicals to the healthcare and pharmaceutical industries.
The group has a strong international presence and exports more than 80 per cent of its products to Europe, Asia and the US. The investment from Traditum has supported consideration to the group’s former shareholders and will also provide Entaco with additional growth capital, enabling it to invest in machinery as it aims to improve efficiencies and personnel.
Following the MBO, Entaco is seeking to grow its revenue by more than 50 per cent to £15 million under the leadership of Steve Brown.
Mr Brown commented: "I'm thrilled to announce the successful completion of the management buyout of Entaco and Redditch Medical. This milestone marks a significant achievement for us, solidifying our commitment to growth and innovation within our industries.”
"Our vision for the future is to continue to provide high-quality products but it's also about enhancing our product range, service and capabilities to better serve our customers and the industry.”
"I'm immensely proud of our team for their dedication and hard work throughout this process and I'm excited about the opportunities that lie ahead as we embark on this new chapter."
Traditum Head of Investments Iain Marlow, who has also joined Entaco’s board following the MBO, added: "The Entaco Group has represented the best of British design and manufacturing for over 200 years.”
"The group has remained relevant in the 21st century through innovation and a reputation for quality and service.”
"These qualities have been nurtured under the leadership of Steve Brown and his team and Traditum is proud to be able to support him and the business in the next phase of their growth story."
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