Liverpool SME funding specialist River Capital will secure eight times its original investment following its exit from £23m-turnover local manufacturing firm Centriforce. Tony McDonough reports

Liverpool venture Plastic Recycling, which trades as Centriforce, has been sold to London-based investment firm Rubicon Partners.

Managing director Simon Carroll was the majority shareholder in the business which in the 12 months to March 31, 2024, generated revenues of £23.4m and pre-tax profits of £3.4m. He acquired his stake in a management buyout in 2014.

Although the value of the sale to Rubicon has not been disclosed, Centriforce had net assets of just under £11m in its last full-year accounts.

This deal will also offer a “strong exit” for Liverpool SME funding specialist River Capital which backed the original MBO. River Capital owned more than 25% of the equity in the business and will receive eight times its investment.

Centriforce is a manufacturer of damage prevention products made from recycled plastic for the utility, agricultural, building, and landscaping sectors. River Capital decided to invest after being convinced of strong demand for environmentally friendly products.

Simon Carroll, who is departing from his role as managing director, said: “Our partnership with River Capital has been instrumental in accelerating the growth of Centriforce and allowed us to enhance our innovation capabilities.

“We’re proud of what we’ve achieved together, and I am sure the business will continue to flourish under its new owners and leadership team.”

Marion Savill, portfolio director at River Capital, said Centriforce represents “a perfect example of the kind of high potential SME businesses we seek to back and work with through our private equity offering”.

She added: “It has been a pleasure working with the team at Centriforce over the period of our investment, and supporting the development of the business through a period of significant innovation and growth.

“We look to work with our investments as a trusted and valued partner, helping management teams to devise and deliver on a comprehensive value creation plan.

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“This transaction marks our fourth successful equity exit of the year, further underlining our commitment to helping businesses across the North West to achieve their goals.”

Michael Loudon, Zack Goddard and Andrew Royle at Clearwater provided corporate finance advice to the shareholders and Elan Iorwerth and Joe Reade at Hill Dickinson provided legal advice.