THE new head of two major East Lancashire employers has predicted a bright future following a £23 million management buy-in.

Padiham-based Perseverance Mills, hich has a site in Blackburn, and Scapa Mouldings of Rishton and Durham, have been bought from the Scapa Group.

The two businesses, which employ more than 500 people, will form a new company called Padiham Group.

"We are delighted to have acquired these two well-established companies from Scapa Group," said Alex Watson, chairman of the new company.

"We believe the new management team, together with existing management, will be able to strengthen and consolidate the position of the two businesses.

"We anticipate and expect an exciting future for these two companies."

Mr Watson is a previous managing director of Carnaud-Metal Box Company. Chief executive Keith Chapman, was managing director of Delmar Group plc and then Bibby & Baron Group Ltd.

Finance director John East was previously in a similar post with pallet and container leasing firm Chep in Europe.

The MBI has been backed by venture capital group 3i and the Bank of Scotland.

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