Perth transport tycoon Sir Brian Souter has backed a multi-million-pound takeover of a major European plastics packaging firm.
The Stagecoach founder supported Lonsdale Capital Partners (LCP) in last month’s acquisition of Suominen Flexibles, the flexible packings arm of Finland’s Suominen Corporation.
Sir Brian’s private family investment vehicle Souter Investments confirmed it had taken a “significant minority stake” in the business for an undisclosed sum.
The deal is the fifth co-investment that Souter investments has made with LCP.
The takeover deal valued the Flexibles business, which makes a range of high quality plastics for use as packaging in the food, healthcare and retail sectors, at €20 million.
The company, which exports to more than 20 countries worldwide, was founded in 1952 and produces its range of packaging products from three dedicated factories in Finland and Poland.
It also has offices in Sweden and Russia and generated net sales of around €60m last year.
Souter Investments’ John Berthinussen said the company’s prospects had made it an attractive investment opportunity.
“We are delighted to support Lonsdale in their acquisition of Suominen Flexibles,” Mr Berthinussen said.
“We are sure that the business, led by incoming CEO Borge Kvamme and Deputy CEO Reima Kerttula, has a bright future.”
Alan Dargan of Lonsdale Capital Partners said the firm had restructured its operations and was now positioned to grow its presence across Continental Europe.
“The existing management team and staff at Suominen Flexibles have accomplished a remarkable transformation of the business in 2014,” Mr Dargan said.
“Our objective is to build on this and grow Suominen Flexibles in the Nordic countries and in central and eastern Europe.”
New chief executive Borge Kvamme, who left his role as chief executive with German firm Kobusch to lead the development of Suominen Flexibles, said the firm had the foundations in place for growth.
“We have acquired a group with experienced and ambitious management and staff,” he said.
“The deep knowledge that Suominen Flexibles has of the plastic packaging sector, its core asset, will be strengthened by enhanced customer focus, increased efficiency and a boost in innovation.”
Mr Kerttula said he expected that new opportunities would now open up for the business.
He said: “Lonsdale and Souter are the perfect future partners for Suominen Flexibles, providing the focus and resources that the company needs in order to fulfil our ambitions across our attractive markets, further develop our operations and serve our customers even better.
“This is the beginning of a new time for Suominen Flexibles.”