Press release
Plastic fantastic deal moulds local firm's future
A Berkshire manufacturing company which made canopies used on World War Two Spitfires, has acquired a major competitor in a deal which creates one of the largest companies of its kind in the UK.
Wokingham Plastics provides thermoforming manufacturing services to a broad range of industries from its facility on Fishponds Road. It uses the latest technology to shape sheet plastic products for use in a wide variety of applications.
Established in the late 1930s, one of the business’ first manufacturing contracts was to form the acrylic canopies used in Spitfires taking part in the Battle of Britain.
The company continues to supply components used in the latest generation of fighter jets in addition to many other products for other industries.
Wokingham Plastics has acquired Cox Thermoforming, a Hertfordshire-based business which provides similar design and moulding services. The enlarged business will trade under the name Cox Wokingham Plastics Limited.
The acquisition increases the business’ turnover to £6 million and creates the one of the largest custom thermoforming companies in the UK with around 80 employees.
Initially introduced by Steve Cox, Relationship Director for Lloyds TSB Corporate Markets in Reading, the deal was ultimately funded by a full asset based lending package provided by Lloyds TSB Commercial Finance.
The facilities leverage against the assets in the balance sheet and the cash generation of the business and are ideally suited to companies that are looking to expand.
Commercial Finance also put in place a sophisticated debtor protection system which secures the company’s balance sheet against insolvency or non-payment of invoices by customers.
Chris Dodridge, managing director of Cox Wokingham Plastics, said: "We identified considerable synergies between the two businesses. This deal has enabled us to rapidly grow our customer base and puts us in a strong position to achieve further organic growth.
"Thermoforming is a competitive market where a number of target markets have moved their production overseas. Many applications however require high quality, technical solutions and we have the expertise in specialist hybrid materials that many of our competitors don’t.
"Lloyds TSB Commercial Finance’s facilities ensure that cash flow within the business will remain healthy and secure, which gives us the headroom to immediately look at new opportunities for the enlarged business."
Steve Cox comments: "I am delighted we have been able to support the completion of this deal. This is a fantastic example of how we can help growing businesses and I look forward to working with Chris and his team as they seek further opportunities.
Steve Edwards, Regional Manager for Lloyds TSB Commercial Finance, said: "Cox Wokingham Plastics is typical of many manufacturing businesses which are looking to generate the critical mass required to compete effectively in a rapidly consolidating market.
"The management team has the reputation, motivation, technical expertise, and customer focus to ensure the business continues to win prestigious and lucrative international contracts."
"The tailored asset backed lending and overall funding package devised by the Lloyds TSB Group will provide the business with the financial resources to quickly seize these opportunities to expand."
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
