Equistone sells Allied Glass in multi-million pound deal
ALLIED Glass has been snapped up in a multi-million pound deal to private equity firm CBPE.
Investment group Equistone Partners Europe completed the sale of the Yorkshire-based glass container manufacturer and it is understood that CBPE, which has bought the business for the second time, paid between £120m and £130m for the firm.
CBPE originally acquired Allied, which saw turnover rise to £102m for the financial year ending December 2012, in 2002 and exited to Equistone Partners Europe in 2010. Equistone’s Fund III supported the management team when it acquired a majority share in 2010 as part of a £75m management buyout.
Allied Glass, which employs over 660 people across two factory sites in Leeds and Knottingley, is the UK’s fourth largest glass bottle manufacturer by volume and a leader in specialist bottle serving the high-end global spirits industry. It specialises in the production of complex bottles and supplies containers to brands including Johnny Walker, MaCallan and Smirnoff vodka.
A team at Rothschild advised shareholders, led by director Stephen Moore, managing director Andrew Thomas, assistant director Rob Dunnett and associate Amy Bashforth. Eversheds, led by Leeds partners Robin Skelton and David Milne provided legal advice to Equistone.
Earlier this year, Allied Glass completed a multi-million pound investment into its site in Knottingley to boost production and keep up with demand. The investment supported a new decoration facility and the recruitment of James Hart as finance director to strengthen the senior management team.
This transaction will see the management team retain a significant stake in the business with a continued focus on growing revenue from existing end markets.
Steve O’Hare, partner at Equistone and non-executive director at Allied Glass, said: “It has been a pleasure working with an extremely talented and entrepreneurial team at Allied Glass. The business has grown strongly over the last few years by putting the customer at the heart of everything it does, investing significantly in operational capability and expanding its product offering. Alan and the rest of the team have firmly positioned the business for further growth and we wish them well for the future.
Alan Henderson, managing director at Allied Glass, said: “Equistone has been an ideal partner for the business during this expansion period. We have focused the business on achieving quality and sustainable organic growth while strengthening relationships with our customers.
“It has been a very enjoyable period working with Steve and Equistone and we are looking forward to working with CBPE again. We have known them for many years and are confident that they are the right partner as we enter the next phase of our development.”
Deloitte’s transaction services team led by partner Matt Henderson in Leeds and supported by partner Richard Bell and director Dan Wright provided financial, tax, environmental and health and safety due diligence. Commercial due diligence was provided by Roland Berger Consultancy and Yunus Seedat from Addleshaw Goddard in Leeds advised CBPE.
Seedat, head of private equity at Addleshaw Goddard, said: “Allied Glass is a world-class manufacturer and Addleshaw Goddard is delighted to have advised Close Brothers Private Equity on this transaction.
“The company is a major employer in the region and Close Brothers’ investment will enable Allied Glass to expand further and fulfil its ambitious growth strategy.”
Incumbent banks HSBC and Lloyds TSB were joined by Investec and GE in providing senior debt facilities.
