MBO for CPL Industries
COAL merchant CPL Industries has undergone a partial management buyout.
As part of the transaction CPL’s private equity shareholder Vision Capital has taken a majority stake with the senior management team holding the remaining shares, in a deal part-funded by Lloyds Bank Commercial Banking.
RBS, the previous majority shareholder, and two former members of the management team have exited the Chesterfield-headquartered business, which is Europe’s largest manufacturer of smokeless fuel products.
Founded in 1973 from the non-mining operations of British Coal, CPL was privatised following a management buyout in 1995.
The current management team have been in place for six years and have overseen a 45% rise in sales to £140m during this period.
CPL, which employs more than 500 staff, manufactures smokeless solid fuel briquettes, producing around 300,000 tonnes a year for home heating.
The company has a range of brands, including Homefire and Ecoal, the foremost eco-friendly solid fuel, which it sells direct to households and through supermarket chains, DIY stores and large petrol forecourt operators.
CPL has also developed a successful export business, with sales from France, Germany and Ireland generating a significant part of overall revenue.
Tim Minett, CPL’s chief executive, said: “The transaction reaffirms the long term commitment to the business of the management team. The growth that we have achieved in recent years has been built on a strong product offering and through the hard work and dedication of our employees.
“We remain confident of further growth, particularly in key European markets, through the development of green fuels and through the expansion of our retail and online sales channels.”
Adam Barraclough, relationship director at Lloyds Bank Commercial Banking, said: “CPL is a well-managed business which consistently delivers an impressive set of results. The new ownership structure provides the company with additional stability from which they can execute their future growth plans.”
DLA Piper’s corporate team advised CPL on the transaction.
Rob McKie, legal director in the Sheffield corporate team, said: “We are extremely pleased to have acted for our long-standing client CPL on this transaction. This transaction provides the business with a solid platform which will allow CPL to drive its business going forward and to reach and exceed their goals.”
