CBPE has backed an experienced management team, headed by West Midlands entrepreneur David Grove, in the acquisition of VIP Heinke from Etex Plastics.

VIP Heinke, with an annual turnover of around £12 million, was formerly part of Glynwed Pipe Systems Limited and manufactures rubber mouldings and extrusion products used primarily by the water and rail sectors. The company employs 200 people in its two factories based in Huntingdon, Cambridgeshire and Ashford, Kent.

David Grove is Chairman of a long-standing CBPE investment, Stratford-upon-Avon based Grove Industries. Grove will take a non-executive director role with VIP Heinke. Rod Lister, Chief Executive of United Polymers, another rubber and plastics business in the Grove Industries stable, will also become a director.

The VIP Heinke acquisition fits with Grove’s strategy of identifying ‘turnround’ investment opportunities. It has seen declining sales in recent years due to the problems associated with Railtrack and the impact of cyclical expenditure in the water industry. However, both areas are expected to see turnover growth through increased maintenance expenditure on the rail network and the third phase of the OFWAT-regulated Asset Management Programme focusing on the refurbishment of the UK’s water system.

CBPE’s Simon Wildig, who will join the VIP Heinke board as a non-executive director, said: “This acquisition mirrors several investments involving CBPE and David Grove and his team. They have had a tremendous record of success in helping companies to realise their growth potential and we’re expecting VIP Heinke to follow a similar pattern.”

David Grove commented: “VIP Heinke represents a good opportunity in the rubber moulding sector, where we already have some experience. This acquisition follows many that we have done before with CBPE. The industry fundamentals look to be in VIP Heinke’s favour and we expect healthy profits growth from the business.”

Rod Lister said: VIP Heinke is a quality business and we believe that the market growth will combine with our own knowledge and experience in the rubber and plastics sector to create an excellent future for the business”.

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This press release has been issued by Close Brothers Private Equity Limited. Close Brothers Private Equity Limited is regulated by the FSA.

The above information is not to be regarded as an offer to sell, or a solicitation of an offer to buy any security. Where information has been obtained from outside sources, it is believed to be reliable, but is not represented to be accurate or complete.