Parafix Case Study
A personal touch makes a difference
Sussex-based Parafix is the UK’s leading convertor and distributor of self-adhesive materials, such as tapes, foams, films and foils, from some of the world’s leading manufacturers including 3M, with whom they enjoy a close relationship. The company boasts an extensive range of equipment that can supply products in slit rolls, sheets or die-cut forms to the specifications of its customers. It turns flexible self-adhesive and non-adhesive materials into bespoke formats using cutting-edge technologies such as Laser Cutting and Lathe Slitting.
John Shipley founded Parafix in 1969, at a time when adhesive tape technology was in its infancy. John announced his retirement plans in 2005, when the wheels were set in motion for Parafix Managing Director Michael Punter and Colin Wills to buy the business and continue the legacy.
Parafix has a growth strategy, having initially acquired a UK market competitor, Thames Adhesive Tapes and then seeing a further opportunity to expand internationally into central Europe. Hungary houses many international manufacturers who see this as an ideal European base for production and Parafix Hungaria Kft has become an important component supplier to many of them.
MHA Carpenter Box became the lead adviser in the management buy-out process, working closely with legal advisers and the banks. All aspects of the deal were considered, including tax planning to help minimise the tax liabilities of all involved.
MHA Carpenter Box continues to offer the Parafix group a wide range of services including acting as a sounding board to the Directors and attending board meetings when necessary. The team also provides commercial and tax planning advice, corporate finance and due diligence, as well as the usual audit, accounting and tax compliance work. Specialist tax advice is a key component – in particular, with significant investment in plant and equipment and research and development, guidance on the substantial tax incentives available has been invaluable and remains a key requirement for Parafix.
Under Michael Punter’s leadership Parafix has continued to go from strength to strength. The group’s reputation for quality and innovation within the adhesives sector is world renowned. The growth plans for the future are very exciting. The delivery of these plans is achieved by Parafix working closely with its key strategic partners. The relationship between Parafix and MHA Carpenter Box remains as valued as ever.
Michael Punter of Parafix comments:
“MHA Carpenter Box helped us with its professional advice and this has empowered us to continue improving the business and the very fine legacy John has left since he established the company in 1969. The team at MHA Carpenter Box act as a great sounding board, helping us plan and implement our business strategy. We hold them in the highest regard as a trusted adviser. The advice they provide enables us to have sensible and professional conversations with our customers, suppliers, and partners. We know that we can rely on MHA Carpenter Box’s service and expertise when we need it.”
John Billings of MHA Carpenter Box comments:
“Parafix is a long-standing and valued client. The group has exciting plans for the future and we look forward to continuing to support them in the UK and overseas, though our international association – Baker Tilly International – for many years to come. Whilst we bring an outside perspective we like to think that we are part of the Parafix team having worked with them for so long.”