Omega Plastics Group - a former North East Company of the Year - has completed a management buyout.
The company, which clinched the top accolade at the North East Business Awards in 2017, has seen its management team, led by shareholder Dave Crone, purchase the stakes from investor and former majority shareholder Chris Thompson, as well as former CEO and current executive chair Craig Swinhoe.
Specialising in injection moulding for various sectors including industrial, automotive, and medical, Omega has experienced significant growth, increasing its turnover from £10m to £15m over the last five years while also boosting its capacity with additional moulding machines.
READ MORE: {}
Dave Crone, now the group managing director, said that Omega has secured new financing to address market challenges and seize future growth opportunities.
With Gary Owen as group finance director and Ian Mallett as group operations director, Mr Crone emphasised the importance of the buyout, saying: "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.
"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."
Omega Plastics was originally set up as a joint venture with Omega Plastics Inc. in 1998.
Most Read
In 2006, Chris Thompson and Dave Crone acquired the business and 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. A year later Signal relocated to new premises, which was followed by the consolidation of Omega Plastics' operations back to Gateshead in 2019.
Mr Thompson said: "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."
Craig Swinhoe said: "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."
With the management buyout (MBO) under way, Omega is set to recruit a new sales and commercial director, and implement a share option scheme for its heads of departments. Supporting this transition, Omega Plastics Group received guidance from Muckle LLP, Clive Owen, TBP, and Lloyds Bank.
Adam Rayner from Muckle LLP 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."