Aberdeen Murray Johnstone Private Equity has acquired a West Bromwich glazing firm, CAP Aluminium Systems, from the company’s founders in a management buy-in/buyout. The exact value of the multi-million pound transaction was not disclosed but the equity portion amounted to GBP6 million. Senior debt and working capital facilities were provided by Fortis Bank. Invex, Birmingham-based corporate finance firm, was lead adviser on the deal.
Chris Hurley, assistant director of Aberdeen Asset Managers’ private equity division in Birmingham, said: “CAP has a good market position and has demonstrated a strong profit track record. Through internal efficiencies and a buoyant market, it will continue to grow profitably. This investment also demonstrates that opportunities still exist in West Midlands based old economy’ companies.”
In 1983, Phil Matts and Clive Stapleton (a director of West Bromwich Albion FC), established CAP Aluminium Systems. It is now the UK’s largest aluminium glazing company catering for commercial buildings, with an annual turnover in excess of GBP20 million and more than 170 staff. CAP’s glazing and framing systems have been used in supermarket shop fronts (including J Sainsbury’s and Waitrose), the National Exhibition Centre, Birmingham, and Piccadilly station, Manchester.
The existing management team of Gerry Morley, Mike Jones and Martin Dobbs will take control of the company. A new managing director, Tim Robinson, will join them. He gained relevant industry experience with engineering group, Benjamin Priest, which, following a 3i-backed MBO, was acquired by building products company, Alumasc.
James Grenfell, director of Invex, said: “This company has become the clear leader in what is a rather fragmented market place. It is the hope of the new management to substantially grow the business over the next three years, and add around 50 per cent to turnover.” The deal is Invex’s largest since its own management buyout.
AMJPE was supported in this deal by advice from Wragge & Co, and MBD and BDO Stoy Hayward. Eversheds advised Fortis Bank.