BLP Group, which has seen its shares trading at just 30 per cent of its net asset value, has de-listed from the London Stock Exchange. This is the first public to private management buyout to be funded through a sale and leaseback, instead of predominantly private equity, financing structure. Private equity was provided in the transaction by the management and Lloyds TSB provided the debt. The total transaction value was just GBP14.6 million with GBP5.5 million being raised from the sale-leaseback of BLP’s facility near Doncaster.
It is envisaged that this transaction will enable BLP to finance new product development and expand into Europe.
BLP (Bonded Laminate Profiles) is the UK’s largest manufacturer of wrapped mouldings and polyvinyl chloride pressed membrane panels used in kitchen, bathroom and office furniture. In 2000 BLP sold its US business and acquired two further businesses in the UK and expects to report a turnover of GBP26 million for that year.
Anne Coolidge, executive director of WP Carey, said: “With the public markets averse to companies of BLP’s size and business, raising additional funds in the capital markets is not an attractive option at this time. Small to mid cap companies like BLP can benefit from the advantages of long term sale leaseback financing and WP Carey… offers a good asset-based alternative to the public markets.”