The deal

FRP Corporate Finance advised private equity investor, Chiltern Capital LLP and management on a debt raise through an Asset Based Lending Facility to finance the management buyout of Strata Products Limited.

Strata was previously a subsidiary of Berry Global Group, Inc. (“Berry Global”), a Fortune 500 developer, manufacturer and distributor of plastic products.

Founded in 1987, Strata Products Limited manufactures a wide range of fully recyclable home, office and gardening products for both the UK and worldwide markets. Based in Nottinghamshire, they are one of the major suppliers of watering cans, storage boxes and decorative planters. As market leaders in many of the product sectors in which they operate, Strata have gone on to win numerous awards including the Queen’s Award for Enterprise: International Trade.

Our debt advisory team led by Partner Nick Grainger ran an extensive debt raising process to deliver a best-in-class Asset Based Lending facility to support the Sponsor-backed MBO. Combining our significant market knowledge and entrenched lender relationships, the FRP debt advisory team was able to structure a comprehensive Asset Based Lending solution that met the requirements of all stakeholders involved.

The financing delivered a committed and cost-effective financing structure to facilitate the MBO and provide growth capital as Strata Products Limited embarks on its next phase of growth under the stewardship of its Management team and Private Equity Sponsor. Through this buyout, Chiltern will support Strata on its growth trajectory with the business planning further expansion in Europe and North America, whilst also continuing its new product development.

The management buyout was led by CEO, Jay Ilsen, and as part of the transaction experienced PE CFO, Ian Hendrie, will join the Board. Management will be further supported by the introduction of experienced PE and plastics manufacturing expert, Glen Sabin, as Non-Executive Chair.

Nick Grainger, Partner at FRP Corporate Finance said: “With significant market knowledge, it was a pleasure to work with the directors and senior management on this deal. This acquisition presents an excellent fit for Strata, starting a new growth journey supported by investment in new markets and products. We were delighted to deliver such a positive outcome for the company.”

David Butler, Partner at Chiltern Capital said: “Strata has a proven history of manufacturing high quality plastic products across a range of markets. This deal allows us to drive growth in the UK through new product development as well as continuing to expand into Europe and North America.”