Formaplex
Sectors: Industrial
Deal Type: MBO, Current
Transaction Value: £19 million
Dunedin contact:
Nicol Fraser
Giles Derry
Overview
We invested £9.3m in Formaplex for a large minority stake in December 2007. Formaplex provides a rapid turnaround service to engineering and product development customers including all UK based Formula 1 teams.
Value Creation
We were attracted to a very strong management team which has built a unique business utilising market leading software, adapted to its own requirements, and with high speed machining expertise. This enables Formaplex to provide high quality products to its customers in very tight timescales. It was also clear that Formaplex has high growth potential in the fast turnaround engineering arena, with the key growth markets being F1, automotive, aerospace and consumer goods. The energy and ambition of the management team attracted us from the start and there was a clear meeting of cultures between the Formaplex and Dunedin teams.
We helped Formaplex with the addition of management, finance and a strategic review which provided the support and tools to the talented executive team to allow them to continue to grow the business.
Business Description
Based in Havant, near Portsmouth, Formaplex utilises hi-speed CNC machining technology and describes itself as an emergency service for the engineering industry. It has developed a real niche in servicing Formula 1 teams with composite patterns and parts for wind tunnel testing but also serves the more mainstream automotive, white goods, aerospace, marine, telecoms and medical sectors.
Formaplex operates within the new product design and development industry, designing and manufacturing prototype and low volume production tooling, injection moulded parts, patterns and components in very short lead times. It also works in underbonnet development, with many of today’s car engine components already being plastic. From air and cooling systems to actual engine parts, plastic helps to make engine systems both easier to design, easier to assemble and lighter in weight. Plastic versatility has revolutionised car engine and component design. The current and anticipated environmental legislation to cut emissions will lead to the further development of plastic technology in particular with hybrid engines.
Formaplex's perspective
Michael Last, Managing Director of Formaplex said, "Dunedin are a great team to work with: ambitious and driven. Their approach mirrors our own."
