Amin Amiri of a2e Venture Catalysts has acquired a majority controlling stake in UK-based Industrial Latex Compounds (ILC) that has a turnover of circa £16 million. ILC, originally part of Dow Chemical, is a “veteran” of the latex industry, boasting a good reputation for customer service and stability even in difficult times, it says. It employs 42 people and has a blue chip client base. The previous owners, Bill Fairhurst and John Davison, will continue to remain involved in ILC for the foreseeable future.
Amiri commented: “ILC has a great position within this niche sector, and this industry segment is “ripe” for a “bout” of consolidation driven by the economic realities and the desire of customers for enhanced innovation and service. I believe ILC will be at the forefront of such consolidation. We have prepared a strategic plan to take advantage of the anticipated M&A activity.” This acquisition will be the seventh such transaction completed by a2e in the last 15 months, which is considered a record by an investment house in the VC industry.
John Davison commented: “We have been working closely with Amin Amiri over the past 9 months or so before the deal was completed. We were impressed with his vision and integrity and a2e’s ethos. We are pleased to say that we believe ILC will benefit greatly from a2e’s involvement.”
The 11-year old a2e is an investment company focusing on the mid-market companies and investing in established, underperforming, industrial/manufacturing companies or those businesses anticipating hyper growth. It says its realisations in the first ten years have created an IRR of 96% per annum on investments, said to be spectacular return by any standards.