Jim Ratcliffe, 55, owner of the strike-torn Grangemouth refinery , reported to be 25th in this years Times Rich List with wealth of £2.3 billion will have no doubt secured the future of his future generations and progeny .
Ratcliffe has grown Ineos rapidly by making ever-bigger acquisitions funded mostly with debt, says Breakingviews.com. “How come, one might ask? Surely even in today’s markets where liquidity is sloshing around, one needs to fund at least 20% of a deal with equity?” Ratcliffe gets round that requirement by using Ineos as the equity – focusing single-mindedly on growing cash flow to increase the company’s debt capacity. “That way, Ineos is ready to be used as collateral for the next deal”, ensuring that “every few years, he can triple or quadruple in size”.
Nor is Ratcliffe averse to blackmailing .
Having acquired ICI’s Runcorn chlorine plant in 2000, “after one of the longest due diligence exercises in recent history”, Ineos decided it had been “sold a pup” and began petitioning the taxpayer to bail it out. Ratcliffe went for broke, asking the Government for £300m: the alternative, he said, was the closure of the plant with the loss of some 133,000 associated jobs.
The press consensus was that “Ratcliffe of Runcorn should be sent packing”, but he nevertheless still managed to extract £50 million.