Natural ingredients supplier Plant-Ex has secured £9m in backing from the BGF to push forward its international expansion ambitions.
The investment – in return for a minority stake – will help underpin significant international growth for the Bristol-based business, with a particular focus on the US market.
Founded in 2010, Plant-Ex specialises in the development, manufacture and distribution of natural food colours, extracts and flavours, supplying food producers around the world. Revenues reached almost £20m in the year to 31 March 2023, according to the most recent set of accounts.
In the past month, Plant-Ex has expanded with a new factory in Bristol, doubling its capacity in preparation for further growth in the UK and overseas.
Special focus has also been placed on the US market following the launch of a registered company in Chicago earlier this year. In addition to operations in the UK and US, Plant-Ex has sites in Poland and Turkey.
Founder and CEO Giles Drewett said it had been “an eventful journey” since launching 14 years ago, with the business taking its products to more than 50 countries.
“Plant-Ex has an exceptional portfolio of products, with some world-beating expertise in product development and manufacturing,” he added. “Having the funds in place, combined with strategic support from the BGF, means the next major developments can be planned and executed to deliver against the high standards expected by our international customer base.”
Alongside BGF’s investment, Plant-Ex’s leadership team has been bolstered with the appointment to its board of Susan Barratt as non-executive chairwoman. Barratt brings a wealth of food and consumer goods industry experience to the role following previous positions with the Institute of Grocery Distribution (IGD) and the Department of Health and Social Care.
James Skade of the BGF said: “The rate at which Giles and the team have been able to grow Plant-Ex in a relatively short space of time is testament to their passion and hard work.
“As Giles and his team look to expand further into international markets, there’s a huge amount of positive impact they can have on consumers, in terms of providing natural, sustainable colours, flavours and extracts in the global marketplace, and we look forward helping them fulfil their objectives.”
The deal was led for the BGF by James Skade, Edwin Davies and Louis Hall. Osbourne Clarke provided legal advice, with tax advice from Claritas alongside commercial advisors at Oghma Partners.
BGF was set up as the Business Growth Fund in 2011 by the government and backed by five of the UK’s main banking groups to support SMEs with an annual turnover from £10m to £100m.
It has since invested in excess of £4bn in more than 600 companies, making it one of the most active investors in the UK.
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