Insider's June Deal of the Month
Sam Metcalf, assistant editor of Midlands Business Insider, has selected the management buyout of paper sack manufacturer DS Smith Sacks as our June Deal of the Month. The move saved more than 80 jobs at the Horncastle-based company.
"After a couple of weeks of depressing news on the East Midlands jobs front, it’s good to report that a management buyout has actually saved some jobs in the region," said Metcalf.
DS Smith Sacks was taken over in a management buyout last week. The Horncastle-based company has also changed its name to Forum Packaging.
The deal, brokered by Lincoln business Queensgate Management, is said to have secured the jobs of 83 workers at its Mareham Road site.
DS Smith Sacks, a division of DS Smith, has been acquired by its managing director and finance director.
The new management team of Mark Spivey and Rob Massey said all jobs at the company are safe and they have already taken on an extra four employees in response to a "growing order book".
"This is a great acquisition for everyone involved," said Jeremy Wetherall of Queensgate Management.
"The business is profitable but it wasn't part of DS Smith's core strategic vision and with new investment Forum Packaging will be able to move forward with confidence."
Spivey, the managing director, said he is looking forward to a period of expansion and growth for Forum Packaging.
He added: "It's business as usual as far as our employees are concerned but we’ll be looking at other acquisitions too and aiming to grow into other market sectors where we can.
"We have a long-term vision for the business. We both live close by and the main reason for buying it was to secure the future of the site in Horncastle.
"We're very happy with the existing team and we’ve got a lot of experience here to drive the business forward; the people within the business were one of the main reasons why we bought it."
Forum Packaging makes paper sacks and bags for the food, animal feed, chemicals and cement sectors. About £500,000 has already been invested in a new roof for the factory.
Metcalf added: "These 83 jobs might seem small fry when you compare them to the proposed job losses in Derby at Bombardier and Egg, but with the parlous state of the jobs market, any good news should be celebrated."
