Management Buyout Announced for Benson Group

December 2011

Benson Group, one of the UK's leading privately owned printed folding carton manufacturers, has announced that its Managing Director Mark Kerridge and Commercial Director Nick Benson have led a management buyout of the business, with support from Lloyds Banking Group.

The transaction has provided the business with an appropriate funding structure to facilitate the exit of two principal family shareholders, and will help to support the management team's future growth strategy.

Mark Kerridge confirmed that: "It will be business as usual," following the successful conclusion of negotiations for the packaging company.

The business has enjoyed a highly successful ten year period of growth since its move to the purpose-built Bardon site and the arrival of Mark Kerridge as Managing Director. During this time, the Benson Group has grown from a £10 million turnover single-site operation, to a four-site £108 million turnover organisation returning an EBITDA of £10.7 million in 2011. It has acquired three additional packaging businesses, absorbed the order books of two further companies, and invested over £22 million in plant and equipment making it the best-invested business in its sector. The business is currently on track to reach sales of £120 million in 2012.

Commenting on plans for the business, Mark Kerridge said: "We expect to continue with our current business strategy, with further organic growth anticipated. The business plan that has been created for the MBO has identified a number of potential opportunities for us to explore in the near future. We will also be keeping a keen eye on European developments."

About Benson Group
Benson Group is one of the UK's leading privately owned printed carton suppliers, producing packaging products for both the food and pharmaceutical industries for a wide range of UK and European customers.

The business manufactures packaging products in four production sites covering in excess of 400,000 sq ft. Benson Group achieves annual sales in excess of £110 million. Food manufacturers are the main customers at Bardon and for the company's two North East facilities in Newcastle and Gateshead. The fourth site in Crewe serves pharmaceutical and healthcare companies. In recent years, investment in new plant and equipment across the four sites totals in excess of £25 million.

Benson Group creates packaging for many well-known companies, brands and retailers. Key account clients across the Group include Northern Foods, Reckitt Benkiser, Greencore and Samworth Brothers. The company is an approved supplier for all of the UK's leading retail chains. Food and pharmaceutical packaging is exported to customers in countries throughout Europe.

For further information on the Benson Group visit the www.bensongroup.co.uk web site.

Press Information

For further information on Benson Group, its operations, or on packaging products or packaging issues please contact:

Russell J Hicks

Genesis Marketing Services (Milton Keynes)
101 Hesketh Road,
Yardley Gobion,
Northamptonshire NN12 7TX
Tel/Fax: 01908 54 33 58
Mobile: 07885 852 428
e-mail: Russ.Hicks@Genesis-Marketing.com
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