NBGIPE reaps 10.7x in Superglass offering

06 November 2007

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NBGI Private Equity (NBGIPE) has reaped a return of 10.7x from the IPO of glass wool insulation business Superglass. This was equivalent to an IRR of 244% on NBGIPE's two-year investment. Superglass placed £72.8m of shares at an issue price of 180p, representing a market capitalisation of £105m and an enterprise value of £135m. The flotation enabled NBGIPE to place 100% of its equity stake and fully realise its investment.

The deal also represented an exit for Investec, which had provided preferred equity to the deal. Some loan stock had already been repaid, but the strong cash flows had been principally re-invested into the business. Superglass's products are primarily used to insulate residential buildings. At the time of the IPO, the Stirling-based business employed a total of 224 staff and reported turnover of £41.7m with EBITDA of £12.1m. "The IPO was always the preferred route," said Richard Morley, who led the exit for NBGIPE alongside Lawrence Dean. "The fact that the public markets have a good understanding of energy efficiency and the company has a good growth story meant that we were pushing an open door," Morley explained. NBGIPE completed the £40m management buyout of Superglass in August 2005.

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