PNC Riverarch backs MBO of Steelite

Kenny Wastell
28 June 2016

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US private equity firm PNC Riverarch Capital has backed the management buyout of Steelite International, a UK provider of cutlery, crockery and tableware to the hospitality industry.

Bank of Montreal and The Private Bank provided a debt package to support the deal, which was led by John Miles, president of Steelite USA.

Under its new owners, Steelite will look to expand its US operations and invest in its manufacturing operations.

The business's CEO, Kevin Oakes, has wholly acquired Steelite's subsidiary Royal Crown Derby, which will spin out from the group as part of the deal.

At the time of writing, the unquote" team was seeking confirmation on the identity of the vendor.

Previous funding
Steelite has a history of private equity backing, with LDC supporting the management buyout of the company in 2002. Four years later, Bank of Scotland backed the £43m secondary buyout of the business, taking a minority stake alongside the management team.

In July 2010, the Bank of Scotland Integrated Finance portfolio, including Steelite, was sold to newly created Cavendish Square Partners – a joint venture between Coller Capital and Lloyds Banking Group – for £332m.

Company
Founded in 1983 and headquartered in Stoke-on-Trent, Steelite provides cutlery, crockery, glassware and catering equipment to the hospitality industry. The business currently has a sales network serving clients from the catering, restaurant, casino and hotel industries across 140 countries.

Steelite generates a turnover of around £100m.

Advisers
Vendor – Catalyst Corporate Finance, Simon Peacock (corporate finance).