LONDON — London-based venture capital firm Chief Executive Partnerships has built up a small but promising portfolio of growing plastics industry-related businesses. The 4-year-old company has just announced its acquisition, for 21 million ($35 million), of PVC pipe extruder Valley Industries Ltd., and mold maker GT Tools Ltd.
These purchases come 18 months after Chief Executive took over another PVC extruder, Econopack Ltd., from leading British engineering group GKN for around 5 million ($8.3 million).
The venture capital firm draws on the expertise of an advisor with special knowledge of the industry, said Nick Garrow, chairman of Chief Executive.
In its latest shopping spree, his company netted Valley Industries of Wigan, England, for 15 million ($24.9 million), paying another 6 million ($9.9 million) for GT Tools of Sutton-in-Ashfield, England.
Valley, which processes about 22 million pounds of PVC per year to make ducting and fittings, operates five Battenfeld extruders, and is expected to generate sales of 13 million ($21.5 million) in 1996.
Valley is benefitting from the rapid growth of Britain's telecommunications sector, according to Chief Executive Partnerships. In addition, the firm could provide pipe for U.K. utilities such as gas, electricity and water services, said Fraser Marcus, U.S. managing director.
He added that the firm has developed a new PVC lining system in sections to fit inside street service manholes replacing the required brick reinforcement.
Valley plans to bring most of its outsourced injection molding of joints and pipe closures in-house in the second quarter of 1997. With these and its lining system, Marcus said, there will be work for two new injection presses — one of 300 tons and the other 100 tons.
The venture capital firm's new mold maker, GT Tools, was launched 20 years ago by Geoff Fletcher and Tim Carlisle, who have invested about 500,000 a year ($830,000) in areas such as computer-assisted design and manufacturing systems, said GT's new chairman, David Houghton.
Its business is concentrated in the automotive and appliance markets, with about 50 percent going to customers such as Ford Motor Co. GT employs 61 at its one plant, in northern England.