Catalyst Corporate Finance has advised on the management buy-out of one of the UK’s leading fabricators of PVC doors and windows.
The £30.5 million deal, backed by HIG Capital, is the culmination of a six month strategy by Catalyst to find a new chief for Synseal Extrusions, which would lead a buy-out of the firm from its founder Gary Dutton MBE.
“Following previous attempts to sell the business by other advisors, we identified that the way to achieve a successful deal was to find a new CEO and for that person to then lead a management buy-out at a price acceptable to the business’s founder,” said Catalyst’s Keith Pickering.
“Using our wide network within the building products and distribution market, we introduced David Leng to the business in late 2008, and after a settling-in period of six months assisted him negotiate both a price and a process that would secure a private equity funder for a management buy-out.
“We then worked with his chosen private equity firm, HIG Capital to secure a debt package put together by the Midlands based team of Yorkshire Bank which, along with HIG’s further committed funding, will support Synseal’s continuing operational improvement programme as well as the company’s organic and acquisitive growth plans.”
Founded in 1980, Synseal is a manufacturer of conservatory roof kits and extruded PVCu profile for window and door systems. The business supplies over 700 independent window and door fabricators and installers across the UK. Employing more than 500 people from its base near Nottingham, the business reported sales of £76 million in 2009.
Chief executive Mr Leng added: “We are very excited to be driving Synseal through its next period of growth. We can see some great opportunities for ourselves and our customers in a fragmented window and conservatory market.
“None of this would have happened though without Catalyst’s practical advice, their knowledge of the private equity market and ability to deliver the agreed deal despite the wider economic climate at present.”
Paul Canning, managing director at H.I.G., said: “We believe that with the resources we bring, coupled with this team, Synseal is well placed to drive consolidation in the market and to harness its position as a leading supplier in the UK.”
Ian Howey from debt provider Yorkshire Bank added: “Gary Dutton has built up an impressive and market leading business.
“The strong MBO team are highly regarded and have significant industry experience which gives them a platform to take the business to the next level.”