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Muckle supports management team at Omega Plastics Group with strategic buyout

21st Nov 2024 | Banking & Finance | Corporate Finance
omega plastics group mbo 950

We're delighted to have supported Gateshead-based Omega Plastics Group as it announces its management team, led by existing shareholder Dave Crone, has successfully completed a Management Buyout (MBO), buying out investor and former majority shareholder Chris Thompson, as well as former Chief Executive Officer and current Executive Chair, Craig Swinhoe.

The injection moulding business, specialising in the industrial and technical, filtration, automotive, medical, and FMCG sectors, has seen rapid growth, particularly in the past five years, with Omega’s turnover growing from £10m to £15m annually, including two record-breaking years during the COVID-19 pandemic. The group also expanded its capacity, increasing the number of moulding machines from 20 to 30.

New ownership structure

With the group also securing new funding arrangements, Omega is well-positioned to tackle market challenges and future growth opportunities.

As part of the management buyout, Dave Crone assumes the role of Group Managing Director and will lead the group alongside fellow new shareholders Gary Owen, Group Finance Director, and Ian Mallett, Group Operations Director.

The buyout provides the group with a new ownership structure that gives the leadership team a direct stake in the group’s future, creating a clear path forward for growth, innovation, and continued customer-focused excellence.

Dave Crone, the new majority shareholder and Group Managing Director, commented: “This is the first time Omega has been fully owned by those who work within it, and that makes this transition even more significant. It’s an exciting time for us, and our renewed focus on growth and innovation is strengthened by the full commitment of our leadership team to the group’s future."

He added, "I want to congratulate Ian and Gary on becoming shareholders and co-owners alongside me. This reflects their confidence in the group’s future and commitment to its continued success. We are passionate about what we believe we can achieve together. The injection moulding sector has faced some challenges over the past year, but we are confident that with our new succession plan, a committed and invested management team, and fresh funding in place, we are well-positioned to tackle these challenges head-on."

Strong foundation for growth

Omega Plastics was originally set up as a joint venture with Omega Plastics Inc. in 1998. In 2006, Chris Thompson and Dave Crone acquired the business, laying the foundation for the group’s strong growth trajectory. Under their leadership, Omega expanded from Gateshead to Blyth in 2007, set up a Hartlepool facility in 2012, and made a significant acquisition of Signal Plastics in 2015. This expansion was followed by a relocation of Signal to new premises in 2016 and the consolidation of Omega Plastics’ operations back to Gateshead in 2019.

Chris Thompson expressed his pride in the group’s journey, saying: “I’m really proud of everything we’ve accomplished over the last 18 years, and winning the North East Company of the Year award in 2017 was definitely one of the highlights. It showed how far we’ve come in terms of growth, innovation, and our impact on the local economy.  Now, as I hand things over to Dave, who has been a vital part of the business from the start, I feel this is the right time for the change. I’m confident that under the new leadership, the group will continue to thrive and keep growing in the future.”

Outstanding solutions to its customers

Craig Swinhoe, who will leave Omega to join Express Engineering as Chief Business Officer at the end of December, reflected on his time at Omega and the Management Buyout (MBO):

“I joined Omega in 2019 to work alongside Dave and Chris on a five-year plan to grow the business, and I’m incredibly proud of what we’ve achieved. Despite challenges like the pandemic, semiconductor shortages, and supply chain disruptions, we’ve seen remarkable growth.”

He added, “I’ve seen first-hand how dedicated and resilient the management and wider team is.   Dave’s leadership has been key to this success, and the MBO marks an exciting new chapter in Omega’s succession plan. It’s a fantastic opportunity for Dave to take majority ownership, with Gary and Ian also becoming shareholders. It’s been a privilege to be part of this journey, and I’m confident that under their leadership, Omega will continue to deliver outstanding solutions to its customers.”

As part of the MBO, Omega will also be recruiting a new Sales and Commercial Director. This individual will lead business development, sales, estimating, and account management, ensuring that Omega’s capabilities are maximised across all sectors, strengthening its position for continued growth and success.

Omega will also introduce a share option scheme for its Heads of Departments. This initiative aligns the leadership team’s interests with the long-term goals of the group, offering them a stake in Omega’s future success.

Key advisors

Omega Plastics Group and the MBO team were supported throughout the process by a number of key advisors. Legal advice was provided by Adam Rayner and Georgia Sproat in our corporate and banking teams, while tax advice was provided by David Baggaley and Stephen Harris at Clive Owen. The team also received funding support from James Clinghan at TBP, with support from John Turnbull and Chris McGrath at Lloyds Bank.

Adam Rayner said: “Omega Plastics has already achieved fantastic growth, and we’re excited to see how the new management team will take the business to the next level.

“It was great to work with the team and the other advisors to support this fantastic transaction, which marks a big step forward in Omega’s journey. We look forward to watching the business go from strength to strength.”

Dave Crone said, “I’d like to thank Muckle for its support in getting the MBO deal across the line. The team's agility and professionalism were instrumental in achieving the deal in some very demanding timeframes.”

For more information or help with your corporate transactions, please contact Adam Rayner on 0191 211 7815 or email [email protected] 

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