Chemoxy operates from two sites in Teesside. It provides specialised manufacturing services to a wide range of large blue chip companies in the chemical and oil and gas industry. It has also developed its own portfolio of low-toxicity solvents, including its Coasol range, used in environmentally friendly paints, industrial coatings and cleaning products.
The business has experienced rapid growth since it was acquired from Dow Chemicals in 2011 in an MBO led by chief executive Ian Stark and Chief Operating Officer Martyn Bainbridge, increasing turnover from £34m to around £50m today. To date, the team has invested more than £10m in new plant and acquired new land at their Billingham site in preparation for future growth.
The business will use the new funding package to make further investments in capital and plant over the next four years in order to increase capacity, expand its product and service range and drive growth. Chemoxy's management team has an ambition to grow revenue to in excess of £100m by 2020.
Ian Stark, chief executive of Chemoxy, said: "This funding package supports our long-term ambitions for Chemoxy, with growth capital empowering us to expand the business without relinquishing control over the management or direction of the firm. At the same time, we are looking forward to drawing on new ideas and expertise."
Barry Jackson of the BGF, added: "Chemoxy is a well invested business with significant potential for growth in a number of different areas. We are delighted to now be a partner in the company and assist the Chemoxy team in achieving the next stage of growth. Teesside and the North East continue to demonstrate strong demand for growth capital with Chemoxy being our third investment in the last 12 months in the region.
The Business Growth Fund has been established to help Britain's growing businesses. Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minority equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for those growing companies that today do not have access to this source of capital. As such BGF hopes to be a catalyst for growth among smaller UK companies.
BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK's main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered. BGF is managed completely autonomously with an independent management team.