Rutland exploring dual-track exit for Omar Group

Barbara Pianese and Josh OтNeill
14 December 2021

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Private equity firm Rutland has mandated Alantra to explore exit options for Omar Group, according to two sources familiar with the situation.

The UK-based builder of park homes and luxury lodges is expected to come to market in Q1 2022, according to one of the sources.

The vendor is looking at a dual-track exit strategy, the sources said. Singer Capital Markets was appointed to advise on the IPO route, one of these sources and a third source familiar said.

Omar Group forecasts around GBP 10m in EBITDA for the year ending in April 2022, with the company expected to be marketed based on run-rate EBITDA of GBP 12m, sources said.

As a result of the adverse effect of the Covid-19 pandemic, the group reported EBITDA of GBP 4.6m in the year ending in April 2021, as per the latest public filing available under Omar Group Holdings Ltd. It generated GBP 8.2m in EBITDA in the year ending in April 2019, according to a public filing.

The business could be valued at 9-10x EBITDA, one of the sources added.

An IPO is quite aspirational, given the small size of the business and limited growth opportunities, one of the sources said. The company has been growing at double-digit rates in the last 10 years and a public listing could make sense, another source countered.

According to one of the sources, Omar Group could attract the interest of trade players. The business has similarities to holiday homes provider Willerby and holiday homes manufacturer ABI, one of the sources said.

According to another source, Willerby and ABI are mostly focused on manufacturing caravans, while Omar Group's park homes retail at higher price points. Willerby's owner, Equistone, was reportedly weighing options to exit the portfolio company earlier this year.

Omar Group has a vertically integrated supply chain that makes it more resilient to the current supply chain issues many companies are experiencing, this source added.

Rutland invested in the company in 2017 for an undisclosed consideration. The following year it acquired UK Sundecks, a supplier of PVCu decking.

Omar Group did not respond to requests for comment. Alantra and Rutland declined to comment.