Lloyds TSB on a roll

Lloyds TSB Commercial Finance has backed the GBP2 million MBO of Geddes Packaging, one of the largest independent packaging manufacturers in the UK. Managing director Ron Leach and co-director Tony Arnold were keen to buy the company and turned to Peter Whitehouse at the Birmingham office of Lloyds TSB Commercial Finance to help fund the deal via an invoice discounting facility. The MBO has given Leach and Arnold full control of Geddes and a free rein to develop the business. The transaction was followed by the acquisition of AB Sales Limited and the next priority for management is to consolidate the existing factories into one unit and a further acquisition of a similar packaging company. Debt funding for the deal was undisclosed.

Geddes Packaging is almost a century old and manufactures over a million boxes and fittings a week, supplying a wide range of businesses, including small farmers and large car part manufacturers. Its range of products includes heavy duty corrugated board cases, plastic and polythene protective packaging and a range of timber cases and pallets.

Lloyds TSB Commercial Finance has been busy of late and the Geddes transaction is one of three completed in the last month, including the GBP3 million MBO of printing company Hovat Limited from SJP Group and the GBP2 million MBO of Valeo Transmission Limited from the Valeo Group.

Ian Lomas, of Lloyds TSB Commercial Finance, says deal flow has been on the up for the last two years: “What we have seen is an increase of around 40 per cent in the number of deals last year. Of this amount around 75 per cent were MBOs. Average deals size is also up this year.” For the first ten months of this year the business has completed around 36 deals. This compares to 28 for the same period last year.