Case study
Linatex Group
Malaysia
Fund manager: Navis Capital Partners (www.navis-capital.com)
Fund size: US$300m
CDC commitment: US$10m
Investing fund: Navis Asia Fund IV
About Linatex Group
Linatex is a global speciality latex rubber manufacturer. It makes abrasion-resistant rubber products and process equipment for industrial, construction and manufacturing uses. Dating back to 1923 when Bernard Wilkinson, a British planter, discovered a way of curing rubber so that it retained its natural toughness, Linatex was established in Malaysia because of the country’s abundant supply of rubber trees. Navis Capital Partners completed its purchase of Linatex Group in October 2005 with the aim of helping it to expand into new markets such as China, Poland, Russia and Chile.
Performance and investment impact
- 256 employees, likely to grow to over 300 by the end of 2006.
- Expansion into international markets.
- Increased sales.
- Linatex plans to invest around US$5m in 2006 to enter new markets in Chile, Poland and China.
- Before the Navis acquisition Linatex already had a good reputation for commitment to health and safety and hopes to extend this to its new markets.
- Relocation of Linatex's HQ from Hampshire to its main manufacturing centre in Malaysia will save millions of dollars cumulatively over the next five years and will improve organisational effectiveness.
