Four D secondary buyout

Bank of Scotland’s Integrated Finance unit has completed a GBP4.3 million debt and equity package to finance the secondary MBO of Four D Rubber, manufacturer of cast latex sheeting. The company was the subject of an MBI in April 1998, which was backed by Bank of Scotland and Northern Venture Managers.

The team, led by Ron Adam, Ian Guthrie and Donald Fowler, provided the company with a long term funding package comprising senior debt, mezzanine and loan stock to support the deal. Bank of Scotland also subscribed for a minority equity stake in the company.

Ian Guthrie, who was involved in structuring the deal, said the funding package was such that it would support and help to build the company be it through acquisition or organic growth.

Ron Adam, director of integrated finance, said: “Four D has an enviable track record, good prospects and a strong team led by Jonathan Prutton. We had no hesitation in backing the management once again and view this as a long term partnership, with the Bank keen to play a part in Four D’s future growth plans.”

The management team was advised by BDO Stoy Hayward Corporate Finance in the East Midlands. John Skes, partner at BDO, said: “This transaction sends out a clear message to private businesses that they can exit relationships with venture capitalists in a positive manner. I expect this to be one of many such deals in the coming years.”

Four D Rubber was set up in 1965 and operates from two sites in Derbyshire. The company supplies cast latex to the clothing industry, the dental, physiotherapy and sports exercise markets and for industrial applications for a broad range of customers internationally.