By PYC Bearings
©2004-2008
Plastics Capital Ltd., a manufacturing investment company, has made its public share capital debut on the London Stock Exchange's Alternative Investment Market (AIM). Established in 1995, AIM is home to more than 2,800 smaller organizations seeking to enhance their liquidity and access to lower-cost sources of capital; it also has some high-profile companies such as Yoomedia and Silverjet. The parallel equity market in the U.S. would be the Over The Counter (OTC, or Pink Sheets) exchange.
Founded in 2002 as a holding company, Plastics Capital has grown by acquiring several specialty industrial product manufacturers. The company said its objective is to, "buy good businesses with proprietary products and a market leading position, and to develop them further."
Plastics Capital is notoriously publicity-shy, and has repeatedly declined to discuss its operations or plans. The company is run by Faisal Rahmatallah, Chairman of Broker Network Holdings, a UK-based insurance broker. In 2005, Plastics Capital acquired Sarnatech's BNL polymer bearing business.
BNL's founder, David Garnett, is widely acknowledged as the inventor of the molded polymer bearing (BNL, or "Bearing No Lube"). Mr. Garnett developed the molded polymer bearing idea when he worked for Koyo. He left Koyo in 1970 to found BNL Bearing. Mr. Garnett passed away in 2003.
Earlier in 2007, Plastics Capital extended the BNL business by acquiring Cobb-Slater Ltd., a small polymer bearing and related product manufacturer based in Darley-Dale. BNL shuttered Cobb-Slater's facility and moved production to its own facility in Knaresborough.
Mr. Rahmatallah said: "In the last four years, we have established a strong platform from which to grow further. Our existing operations are leading players in global niche markets, where there are good opportunities for organic growth. Gurhtermore, we have the financial backing and the people to continue to investigate and complete acquisition opportunities which fit our criteria in the UK and overseas."
He went on to say: "I am delighted with the response from investors. Not only will the flotation raise our profile in the marketplace, but it will now enable the company to continue its highly-focused acquisition strategy. We look forward to continuing the successful growth of Plastics Capital."