Acquisition in East Kilbride
Loan fund backs label firm deal with £5 million
GT4 Group has acquired East Kilbride labelling firm TPL, backed by £5 million from the Scottish Loan Fund, managed by Maven Capital Partners.
The mezzanine finance will be used for the acquisition and to provide development capital to support the growth of the business.
Wet glue label manufacturing is a specialist market in the packaging sector and TPL will join a portfolio which includes Blantyre-based Gavin Watson.
The acquisition will bring a number of new clients to the group, covering a broad range of industries including spirits, beer, automotive, cosmetics, electronics, healthcare and pharmaceuticals.
Julie Glenny (pictured), investment director at Maven, said: “This acquisition makes strategic sense on a number of levels and provides significant cross selling opportunities across both operations. We’re delighted the management team selected the SLF as its preferred funding partner and look forward to working with them in delivering their growth aspirations for the business.”
Ian Johnstone, chairman at Gavin Watson Printers TPL “will fit perfectly into our group”.
Michelle Kinnaird, investment director at the Scottish Investment Bank, said: “We are pleased to see the SLF supporting another ambitious Scottish company to expand. This investment allows the company to diversify and increase its product offering and deliver long term growth.”
Financial due diligence was conducted by Consilium, legals by HBJ Gateley, management referencing by Argyll Fenton, commercial due diligence by RPL, and insurance by Vista Insurance.