Better Capital buys Everest for £25m

Greg Gille
29 March 2012

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Turnaround specialist Better Capital has acquired a 95% in stake in UK-based home improvement products manufacturer Everest in an all-equity, ТЃ25m transaction.

This is the first acquisition for Better's BECAP12 Fund LP vehicle, which has net proceeds of £166m at the first closing in January 2012. It has an investment period running to 31 December 2014 which may be extended if needed.

The £25m of equity will finance the acquisition and fund Everest's working capital and restructuring requirements.

Building Plastics Holdings, the holding company for entrepreneur Brian Kennedy's window manufacturing businesses including Everest, was said to have breached its banking covenants in mid-2010.

The sale attracted various interested parties, although it was not run as a straightforward auction process, according to Better Capital. The GP was attracted by the company's strong brand and its good underlying structure despite recent trading difficulties.

Better will look to step up Everest's marketing activity, initiate improvements in its installation process and invest to modernise the factories.

Previous funding
Hutton Collins acquired a significant minority stake in Everest in 2007 from Bank of Scotland and majority shareholder Brian Kennedy. Acquisition debt facilities totaling £100m were provided by Bank of Scotland.

Hutton Collins could not be reached for comment.

Company
Established in 1965, Everest specialises in the manufacture, installation and supply of home improvement products. Its range includes PVCu and aluminium windows and doors, conservatories, roofline products, garage doors, security systems, kitchens, driveways and other home improvement products.

Cuffley-based Everest posted a £173m turnover for the year ending on 31 October 2010. Since then, trading has been difficult according to Better Capital. The company employs 810 staff.

People
Nick Sanders led the deal for Better Capital.

Advisers
Equity - SJ Berwin (Legal).
Company - Clearwater Corporate Finance, Phil Burns, Chris Smith, Rob Britton, Al-Munther Sultan (Corporate finance).