Close Brothers Private Equity (CBPE) has backed the management buyout of The Industry, a UK-based supplier of film and other consumable items to the film industry. Total value of the transaction is thought to be around the GBP5 million mark. The Industry is a management buyout of the manufacturing and distribution divisions of AIM-quoted VFG PLC which serves some leading names in the UK, TV and film industries including the BBC and Granada.
The new company’s management team will be led by CEO, David Stamp and Peter Mountford of Bradmount Investments who will become chairman. Senior debt financing for the transaction was provided by The Royal Bank of Scotland.
The Industry’s manufacturing division, which trades under the name Formatt Filters, has recently completed a GBP3.5 million development project for a range of advanced filter products for film and television. These filters use a process known as absorbing cell technology to guarantee purity of image and were recently supplied and used in the film, Bridget Jones’ Diary.
For the year to August 2001, The Industry had a turnover of GBP12 million and reported pre-tax profit of GBP0.7 million.
Mark Perryman of CBPE said: “This is a great management team and the combination of the market leading position of The Film Game with the revolutionary technology of the Formatt Filters ensures a very exciting future for the company.”
The Industry is CBPE’s seventh investment from its Fund VI, which is due to close by year end at around GBP250 million.