Soho Square launches auction for Technical Fire Safety Group

Josh O'Neill and Min Ho
22 April 2022

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Private equity firm Soho Square Capital is working with Rothschild on a sale of Technical Fire Safety Group (TFSG), a UK-based manufacturer of fire-resistant products, two sources familiar with the situation said.

The asset's annual EBITDA is being marketed at GBP 10m-GBP 11m, according to both sources. In the year ended 31 December 2020, TFSG booked sales of GBP 16.2m – down 5% on the year prior, largely due to COVID-19 headwinds – while losses totalled GBP 15.5m, filings with Companies House show.

The sellside has distributed information memoranda to prospective buyers, the first source noted.

Soho Square (formerly ESO Capital) acquired its stake in TFSG (formerly Pyroguard) from former sponsors NVM Private Equity and Dunedin in September 2018 for an undisclosed sum. Under the management buyout deal, TFSG's leadership team, led by CEO Neil Tilsley, became majority shareholders in the business, as previously reported. Clearwater International served as financial advisor on the transaction.

In 2020, TFSG generated the majority of its revenues – GBP 8.8m – in the UK, while GBP 6.9m of sales were made in Europe, with the remaining GBP 527,129 originating from sales outside these regions, according to Companies House filings.

Meanwhile, Soho Square has retained Clearwater International to marshal its exit from another fire-safety portfolio company, Alpine Fire Engineers, which is smaller than TFSG, with EBITDA of GBP 5m – GBP 6m, as reported last month.

Headquartered in Lancashire, TFSG encompasses Pyroguard and Fire Glass UK, which specialise in the production of fire-safety products, notably cuttable and fortified glass. The firm has 10 operating locations and has more than 300 employees.

Soho Square declined to comment. Rothschild did not respond to a request for comment.