British Manufacturer Entaco Secures £1M+ Investment and Strengthens Leadership Team
Entaco Ltd, a medical devices manufacturer, that exports more than 80% of its products to the US, Europe, and Asia, has been acquired in a management buyout and secured £1m investment from private equity firm Traditum.
The buyout was led by Entaco’s managing director Steve Brown, who will now assume the role of Group CEO, to drive the business forward as it targets over 50% growth to £15m turnover.
Traditum has invested over £1m to fund both consideration to the former shareholders and to provide growth capital for the business. The backing will enable Entaco to invest heavily in machinery that will improve efficiencies and personnel.
Entaco Group can trace its heritage back over 200 years and today is comprised of three divisions: John James Needles, a brand famous worldwide for the manufacture of specialised hand sewing needles, Entaco Medical Devices, which manufactures medical devices for global healthcare firms, and Redditch Medical, specialising in cleanroom contamination control solutions.
John James Needles and Entaco Medical Devices are based in Redditch while Redditch Medical is based in Sedgefield, County Durham, from which it manufactures and distributes cleaning chemicals to the pharmaceutical industry and other medical and healthcare firms.
As part of the buyout, the senior executive team has been strengthened by the appointment of chief financial officer, Matthew Chaloner.
Matthew is a highly experienced CFO and former chief executive, with twelve years of experience within the manufacturing sector, garnered at Howle Holdings, a UK based group of engineering companies with a combined turnover of £12m. Matthew led the takeout of Howle by Elektron Technology plc in 2006, before moving to NetDimensions, a B2B SaaS business headquartered in Hong Kong. In 2017, NetDimensions was sold for £53.6 million. Since then, Matthew has been offering consulting services to SaaS companies in Europe and Asia.
The Entaco board has been further enhanced, with a number of senior hires, including the appointment of experienced entrepreneur, Alistair Needler and former senior NatWest banker, Richard Topliss as non-executive directors.
Steve Brown, Entaco Group CEO said “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. Together, we will continue to uphold our reputation for excellence, driving forward with determination and purpose. 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.”
Iain Marlow, head of investments for Traditum, who has also joined the Entaco board was supported by Traditum Investment Director, Oliver McRae. Iain commented: “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.”
Traditum was supported with legal advice from Paul Johnson and Nina Latham of law firm Mills and Reeves. Richard Wilson of RSM provided tax advice to Traditum and Guy Owen of Sanderson Weatherall provided property advice. The management team was advised by Steve Halkett of law firm Wright Hassell.
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