Fire safety glass specialist announces new backer following investor exit
A Haydock-based independent fire safety glass specialist has a new backer following the exit of Soho Square Capital.
The London-based investment firm has sold its stake in Technical Fire Safety Group to German company svt Holdings GmbH, for an undisclosed sum.
TFSG has grown to become a European leader in its field, producing, processing and supplying mission critical fire-rated products to more than 1,300 customers across more than40 countries, in both the construction and refurbishment markets.
Soho Square originally invested in TFSG in 2018 with a plan to drive growth through investments in R&D, enhanced manufacturing capacity and expansion into new geographies. During the period, TFSG has grown rapidly, with revenue and EBITDA both increasing threefold.
Soho Square’s realisation of its investment sees TFSG acquired by svt, an internationally leading provider of preventive passive fire protection products and installation management and restoration management services in Germany.
It is backed by Ergon Capital, a pan-European mid-market private equity investment fund with approximately €2.5bn of assets under management.
Soho Square’s deal team was led by David Steel (director) and Stuart Hamilton (principal). Soho Square and TFSG were advised by Rothschild & Co (corporate finance), Addleshaw Goddard (legal), KPMG (financial due diligence) and LEK (commercial due diligence).
The multi-jurisidictional Addleshaw Goddard team advising on the deal included Peter Wood, Dave Parker and Rebecca Sabin, supported by Hubertus Schroder, Natalia Ilyevich, Mattieu Taupin, Francois Alambret and Emmanuelle Lecornu-Mercier. Richard Firth from Park Place Corporate Finance also advised.
The investment in TFSG, which consisted of senior capital and a minority equity stake, is typical of the type of investment that Soho Square is pursuing in the UK and Northern European markets.
David Steel, director at Soho Square Capital, said: “Having been investors in TFSG since 2018, it has been a pleasure to be part of TFSG’s rapid growth journey and to have supported this talented management team in the expansion of the business.
“Revenue has almost tripled during our hold period as the company has cemented its status as one of the highest quality manufacturers of fire-rated products in the world. We wish the TFSG team the very best for the future and have no doubt that they will continue to flourish with their new owners, svt.”
Neil Tilsley, CEO of TFSG, said: “Following four years of rapid expansion, I am delighted to be partnering with svt for this next phase of growth.
“Soho Square has been a forward thinking and proactive partner, readily supported acquisitions and provided considerable investment into expanding the capacity of the business.
“This has undoubtedly helped make TFSG the successful business it is today. The new partnership with svt will bring clear synergies and cross-selling opportunities and I am confident and excited about the future for TFSG and the wider svt group.”
He added: “As part of the Technical Fire Safety Group, international expansion is a key part of our investment strategy, and this merger with the svt Group of Companies is the next step on this journey. Together with svt, we can both increase our global market share and further develop and expand our capabilities in passive fire protection.”
There will be no redundancies, job transfers or job changes for employees in connection with the merger.
