Maven Capital Partners, as joint manager of the Capital for Enterprise Fund, has made a GBP2m investment in Pentagon Chemicals, a UK-based chemical manufacturer.
The GBP75m fund is a government backed initiative launched earlier this year to help small and medium size enterprises in the UK gain access to the financial support required to bridge the funding gap caused by the credit crisis.
In April 2009, it was announced that GBP60m from the fund would be allocated to two separate GBP30m funds, one of which is managed by Maven. A further GBP15m is being managed as a co-investment fund by Capital for Enterprise Fund Managers.
The investment will support Pentagon Chemicals’ growth and development plans as a contract manufacturer of organic intermediaries for use in the life science, petrochemical and speciality chemicals markets. Pentagon was advised by BDO Stoy Hayward and Pinsent Masons.
Pentagon Chemicals was established in 2002, formed from the buyout of Dow’s Specialty Chemicals business, and in 2003 it acquired the Fine Chemicals business from Great Lakes. The business employs around 160 staff across sites in Halebank in Cheshire and Workington in Cumbria.
Allan Laing, chief executive of Pentagon Chemicals, says: "The new investment will underpin Pentagon’s growth strategy, enabling more aggressive business development by supporting the new product pipeline and high-return capital projects. It will also provide the financial stability required to satisfy our global customers and suppliers that Pentagon can fulfil its role as a long-term strategic partner.”
Andrew Craig (pictured), partner at Maven, adds: “Pentagon Chemicals is a high quality fine and specialty chemical contract manufacturer with an impressive blue chip client base, the senior management team, led by Allan Laing, have exciting plans for the business and Maven is delighted to be able to provide this investment from the CfE Fund to help the team achieve their strategic vision. This again demonstrates the value of the CfE fund in supporting ambitious UK businesses like Pentagon Chemicals.”
