Barclays Private Equity backs secondary MBO of Allied Glass
Barclays Private Equity ('BPE'), one of Europe’s leading mid-market private equity firms, has taken a majority share in UK glass container manufacturer, Allied Glass ('Allied' or 'the company'), in a £75 million secondary management buyout from CBPE Capital ('CBPE').
The deal adds to BPE’s existing manufacturing portfolio, which includes producer of aluminium aerosol cans, Aerocan and the manufacturer and distributor of metallic gates, curtains and aluminium rolling shutters, La Toulousaine.
Allied, which has approximately 600 employees across its two factory sites in Leeds and Knottingley, West Yorkshire, is a leading manufacturer and supplier of high value, low volume glass containers to spirits and food manufacturers, specialising in the production of complex bottles. The company supplies its containers to some of the world’s leading beverage companies including Diageo Scotland, Whyte & Mackay, De Vere and William Grant & Sons, and for brands such as Grant's Scotch whisky, Johnnie Walker whisky, MacCallan malt whisky and Napolina Oil.
The company, which has a turnover of £78 million (FY09), was originally acquired from Associated British Foods plc in 2002 via a MBO backed by CBPE Capital. Allied has maintained steady growth throughout the downturn through its flexible approach to design and manufacturing, and strong service levels. The company presents a strong investment opportunity for BPE, taking into account a well invested asset base, new products and end market growth.
BPE has invested £29.5 million for a majority stake in the company, alongside a reinvestment from management and senior debt facilities, provided by HSBC and Lloyds TSB.
Steve O’Hare, director at Barclays Private Equity, who joins Allied’s board as a non-executive director, said:
“Allied has amassed a strong stable of world-renowned customers, invested in flexible production facilities which complement its high value, low volume niche, and developed capabilities in the production of light weight containers. Taking into account its customers’ focus on building brand value through design, the company has successfully grown to become the fourth largest manufacturer of glass containers in the UK.
“The business has invested heavily in its asset base, providing a strong platform for future growth. Allied can now service increasing volumes, and has developed new products targeting niche markets.”
Alan Henderson, managing director at Allied, commented:
“BPE’s investment will provide us with the ability to further build on our established customer base and continue to develop our design offering. It will also facilitate further advancement in flexible production techniques and allow us to build additional production capacity as demand increases. We will also be able to take advantage of acquisition opportunities as they arise.” p>
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