refinancing in brief

Hutton Collins, a UK investment firm, has purchased a 25.1% stake in home improvement business Everest in a deal which values the company at £150m (€220.5m). Bank of Scotland provided a £100m debt package. PricewaterhouseCoopers advised. Simon Jarman, managing director of Everest, has increased his shareholding from 11% to 25% in the refinancing, while entrepreneur Brian Kennedy has sold down part of his share in the business from 66% to 43%. According to reports, Kennedy, who also owns interests in rugby club Sale Sharks, plastics business Latium Holdings and conservatories business Ultraframe, bought Hertfordshire-based Everest for £47m in 1999 before selling part of his stake to management in 2003 for £63m. Everest, established in 1965 and best known for its ‘fit the best’ double glazing adverts fronted by local farmer Ted Moult in the 1980s, has more recently diversified into fitted kitchens, conservatories, flat roofs, guttering and cladding, garages, patios and home security products. The company reported turnover of £140m and operating profits of £16m in the year to October 2006. Hutton Collins’ other investments include Healthcare at Home, purchased from Apax Partners in July, insurance broker Windsor, carpet business Interfloor and noodle chain Wagamama.

Electra Private Equity, a UK-listed private equity firm, has overcome concerns about the credit market with a refinancing of portfolio company Allflex, a visual and electronic animal identification business. Royal Bank of Scotland led the refinancing, which will provide Electra with cash proceeds of US$78.3m, along with interests in the company valued at US$114m. Electra carried out a US$160m buyout of Allflex in 1998. Following two previous refinancings, Electra said Allflex will currently provide a money multiple of more than five times the original buyout and an internal rate of return over nine years of 25%. Allflex has sites in France, the US, Canada, Australia, New Zealand, Brazil and China, and for the most part sells into the cattle and sheep sector.