Rutland Fund Management is acquiring Duralay underlay business, providing a realisation for buyout house, Cinven. Rutland has formed a new company, Interfloor Group Limited to acquire Duralay from Cinven and Gates Consumer and Industrial from Tomkins for a combined purchase price of GBP60 million.
The transaction comprises around GBP40 million of acquisition debt finance and GBP20 million of equity/shareholder loan stock. The combined group will have proforma sales of around GBP142 million in the year to May 31 2002.
Cinven originally invested in Duralay in 1996 in a leveraged buyout transaction worth GBP34 million. The combined businesses will create a market leader in Europe for the supply of underlays for carpets and laminated flooring. The group also manufactures and supplies a wide range of related accessories and tools, operating from sites both in the UK and the US.
Both businesses have faced challenging market conditions over the years, which have restricted corporate development. Rutland will implement a comprehensive review of the merged entity to develop the complementary strengths of the combined businesses. This is Rutland fund’s fourth investment and takes the aggregate investment of the Rutland Fund to date to GBP72 million.