MBO of Superglass

NBGI Private Equity backed a £40m MBO of Superglass, a leading insulation manufacturer and the second largest manufacturer of glass wool insulation products in the UK. The business has been acquired from Encon. Superglass, which is based in Stirling, manufactures and supplies glass wool insulating material principally for domestic homes. New government requirements, set out to increase energy efficiency, have created a strong demand for building insulation products as developed and manufactured by the company.

NBGI Private Equity backed seven members of the existing senior management team, led by John Smellie, managing director. The deal will see Superglass, which has a turnover of around £40m, majority controlled by NBGI. The firm raised an additional £7m of capital expenditure and working capital facilities from Clydesdale Bank. Debt facilities for the transaction were provided by Clydesdale, and a mezzanine loan was secured from Investec. NBGI Private Equity launched its first €100m fund in June 2000. The company typically provides equity funding of £2m to £15m