Carl Perry and Richard Potts
A Black Country manufacturer has received a £2.5m investment from Frontier Development Capital (FDC) to facilitate a management buyout (MBO) by its current managing director, Richard Potts.
The multi-million-pound investment from FDC will support the buyout of Bowman Stor, seeing Richard Potts become the sole shareholder of the business.
Led by Potts, who joined the business in 2012 and was appointed to MD in 2013, the company is set to pursue further growth via investment in research and development and supporting entry into new and existing markets.
Established in 1998, Bowman Stor is renowned for designing, developing, manufacturing and distributing industrial condensate filtration systems, with its revolutionary patented SILEXA™ filter made from recycled glass. Bowman Stor supplies domestic and international clients around the globe, across a range of sectors including automotive, aerospace, engineering, healthcare, water treatment and pharmaceutical.
Richard Potts, managing director at Bowman Stor, said: “At Bowman Stor, we’ve worked hard over the years to provide innovative solutions for businesses under increasing pressure to improve sustainability and navigate changing environmental legislation in a cost-effective way.
“By focusing on R&D, we have been able to bring to market a number of filtration products, paving the way for future growth, where our unique technology can be used to support a variety of new industries across the world. Having been part of the business for more than five years and by taking a full shareholding, I look forward to driving forward this growth and establishing our own SEPURA brand in all markets.
“FDC have, and continue to be, fully supportive of this transaction and me. They have been completely flexible and pragmatic in terms of their deal structuring, to ensure that the deal is right for both Bowman and themselves. I couldn’t have done it without them.”
Carl Perry, investment manager at Frontier Development Capital, said: “We are delighted to back our first MBO investment in the West Midlands, FDC’s support for Bowman Stor will allow Richard to remain focused on the task at hand – growing the company and adding further chapters to its already exciting story. We believe that the business has huge opportunities ahead and through Richard’s leadership and the support of ourselves and his professional advisers, we are sure that the company’s success will continue.
“By inventing and patenting new technologies, the company is driving forward the filtration sector and setting the bar for the region in terms of R&D and sustainability. The MBO required a flexible funding package, which is exactly what FDC was able to deliver. We are flexible alternative investment fund managers who tailor our fund structures to meet our borrower’s needs. I look forward to working with Richard and his team.”
Frontier Development Capital support businesses by providing access to flexible investments of up to £5m.
Rob Griffiths from Red Clover, Philip Round from George Green LLP Solicitors, Steve Grice from Ludgate Finance, Richard Griffiths from Higgs Solicitors and Phil Nicholls from Wilkes Tranter Accountants also assisted on the deal.
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