Barclays Private Equity backs £75m MBO of Allied Glass
MANUFACTURING firm Allied Glass has completed a £75m management buyout backed by the Manchester office of Barclays Private Equity.
The West Yorkshire-based company makes glass bottles, containers and products for markets including beer, food, spirits and wine and has an extensive client list.
The MBO was led by operations director Alan Henderson, who will become managing director following the deal.
The company has sites in Leeds and Knottingley employing more than 600 people and has annual turnover of £78m.
Lloyds and HSBC banks provided debt for the deal.
Allied Glass underwent a buyout in 2002, led by Andrew Spencer, when the company was bought from its parent, Associated British Foods.
Mr Spencer is to become executive chairman of the group following the latest deal.
BPE has invested £29.5m for a majority stake in the company, alongside a reinvestment from management and senior debt facilities, provided by HSBC Corporate Banking and Leveraged Finance and Lloyds TSB.
Steve O’Hare, director at Barclays Private Equity in Manchester, 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.”
Both of the group’s factories can trace their histories back to the end of the 19th century. Lax and Shaw was founded by Thomas Lax and John Shaw in the Hunslet district of Leeds in 1891, while the first record of Hope Glass Works in Knottingley, home to Gregg and Company, dates back to 1874.
Today, these two operations make up the UK’s fourth largest glass container producer, with a specialisation in the spirits business.
Customers include Whyte & Mackay, William Grant & Sons, and Princes Foods. Brands its glass products are used in include Johnnie Walker whisky, Bombay Gin, and Smirnoff vodka.
Its two factories, which produce 13 million products every week, have a number of furnaces.
