Bousfield has returned to the private sector on a strong financial footing after parent company Amberley sold it to a private investment firm and wrote off 11.5m of debt.

Bousfield Holdings, a firm set up by Runway Ventures and backed by NM Rothschild & Co, bought the Bristol-based inks, coatings and pressroom chemicals manufacturer for 7.25m. Another 1.1m could be paid depending on Bousfields performance over the next year.

Bousfields existing management team, including managing director Andrew Christie, will stay in charge.

Christie said the backing from leading investment institutions in todays economic climate "says much about the quality and potential of our company". He said the debt write-off was "a hard negotiated point".

Runway Ventures public relations consultant Toby Wilkinson said the return to private ownership would allow Bousfields management to focus on its core business, particularly higher-margin niche products, without pressure for short-term returns. The deal is subject to approval at an EGM on 30 November.

Bousfield has now completed its restructuring plans. In July it announced the creation of three new "super centres" in Bristol, Leeds and Swanley along with the closure of its Hull, Manchester and Leicester branches.

Then, in September, it embarked on a "tight" finance programme under new finance director John Paul and cut 40 jobs.

"Its going to be tough for the sector for the next 12-18 months, but we just have to be focused," added Christie.

In January Amberley said it might dispose of any of its four operating units after a slump in pre-tax profits for 2000 (PrintWeek, 5 January). Last month it sold Lawrence Industries, its minerals and chemicals subsidiary.

Amberley bought Bousfield in 1995 and FC Heatons in 1997 to create Bousfield Heatons.

Story by Gordon Carson