Growth Capital Partners (GCP), a UK SME private equity firm that specialises in partnering with owner-managers, has made a minority investment in GTS Flexible Materials (GTS), the tenth investment by GCP’s Fund IV.
Growth Capital Partners (GCP), a UK SME private equity firm that specialises in partnering with owner-managers, has made a minority investment in GTS Flexible Materials (GTS), the tenth investment by GCP’s Fund IV.GTS is a specialist manufacturer of technically differentiated adhesives, flexible laminates and insulation materials which are found in a range of end applications and global markets including automotive, renewable energy and transportation. GTS has over 50 years of know- how and technical expertise, working closely with customers to provide solutions that can perform in demanding manufacturing processes and harsh end environments.
From its manufacturing facilities in South Wales, GTS has delivered strong growth and impressive profitability, expanding its relationships with key clients across Europe and Asia supported by sales offices in Germany and France alongside established distribution and direct sales to customers in China.
GCP’s investment will support GTS’ ambitious growth plans, in particular taking advantage of the exciting growth trends in the electric vehicle market where the technical capabilities of its products are particularly suited to battery manufacture. Other growth applications include renewable energy and power generation markets.
Chris Burgess, GTS Managing Director, says: “The investment is a key milestone in the development of GTS and we are delighted to be working with GCP in the execution of our strategic plans. It is also a testament to the commitment and dedication of our longstanding workforce and to the great relationships that we enjoy with both customers and suppliers alike. The future for GTS is very exciting and we look forward to a long and prosperous relationship with GCP.”
Stephan Wittkaemper, GTS Director Global Sales, says: “We’re happy to have GCP on board who are known for their long-term partnership approach in supporting companies like GTS scale through international expansion whilst maintaining the focus on quality. Our common goal will be to seize on the opportunities that we identified for our specialised insulation tapes and basefoils. Driven by a technology shift towards more light-weight and flexible circuit materials as well as market mega-trends like electrification of the transport sector we see a very promising outlook for our products.”
Ravi Monteiro, GCP Investment Director, says: “GTS has a market leading reputation for high quality, technically differentiated products with long standing and embedded customer relationships. We are delighted to be supporting Chris, Stephan and the rest of the impressive management team with their exciting growth plans. We believe our partnership style and track record of working with specialist industrial manufacturing businesses will provide GTS with the support to scale as they grow.”
The investment in GTS completes a busy period for GCP, being the fourth transaction in the last six weeks including the investment in CubeLogic and the realisation of our investments in Chaucer and DMW Group. GCP is continuing this momentum with a strong pipeline of new opportunities and is currently raising Fund V.
Capital Law’s corporate team, led by partner Tom Kelleher and with support from Philip Barratt and Jordan Thomas, advised GTS’ management team on the deal.
