JD Plastics aiming for a five-star future

Apr 7 2008 by Karen Dent, The Journal

A VENTURE capital company has taken over a North East roofing contractor in a deal valuing the business at £5m.

Key Capital Partners (KCP) has initially paid £3.25m for JD Plastics and Rooflines Ltd, a roofline contractor and supplier, with the remainder to be paid in two years’ time.

The business was set up in 1994 in Bishop Auckland by Graham Dent and his son Jamie. Graham has now retired but Jamie has remained as the managing director to oversee the planned expansion of the business, which both installs roofing products and supplies them to the building trade.

Jamie said: “It was an offer I couldn’t refuse. They are looking at expanding the company on a geographical scale and will open different branches in different parts of the country under the same brand name.

“I will stay as managing director for two years to get the full consideration. They want me to take the business forward and grow it.”

Sales at JD Plastics, which currently employs 55 people, are predicted to hit £5m this year, up from £1.5m in 2006. KCP has installed two senior executives – Jolyon Harrison, the former executive chairman of NorthCountry Homes has become chairman and David Bradley, formerly UK finance director for Wolseley, has become the business’ finance director.

Peter Armitage, a partner at KCP’s Leeds office, said: “JD Plastics is a company with a tremendous market position. Its management team has made great strides and we look forward to supporting the company as it replicates this success across the North of England.”

Neville Bearpark, corporate finance partner at accountants UNW, which advised the Dents on the deal, said: “It’s a good deal because it’s a locally-owned business that perhaps no-one has heard of but they have become a leading provider of their service in the North East.

“There are fantastic opportunities for the future – and for more employment in the North East.”