Close Brothers Private Equity (CBPE) has backed the MBI of VIP Heinke, a manufacturer of rubber mouldings and extrusion products used primarily by the water and rail sectors, from Etex Plastics. The financial details of the transaction have not been disclosed.
West-Midlands entrepreneur David Grove leads the management team although he will take a non-executive director role with VIP Heinke. Rod Lister, Chief Executive of United Polymers, a rubber and plastics business that is owned by Grove, will also become a director.
Commenting on the deal, Simon Wildig of Close Brothers Private Equity said: “This is the latest in a succession of investments from our CBPE V fund supporting David Grove. Our strategy will be to take advantage of an upturn in investment in both the water and rail industries. Whilst not actively seeking bolt-on acquisitions, we will consider every opportunity to improve the company’s performance.”
VIP Heinke employs 200 people in its two factories based in Huntingdon, Cambridgeshire and Ashford, Kent.
CBPE is currently closing its CBPE Fund VI, which is expected to follow a similar pattern to CBPE’s earlier funds. CBPE invests in UK buy and builds, IBOs and development capital. Target sectors are business and IT support services, transport and logistics, industrial manufactured products, leisure and tourism.