NorthEdge reaps 3.5x on £70m sale of DW3 to Masonite

Kenny Wastell
31 January 2018

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NorthEdge Capital has sold UK-based door and window manufacturer DW3 Products to US-listed trade buyer Masonite International Corporation in a deal valued at ТЃ70m.

The sale generated a 3.5x return for the GP after a 40-month holding period, equivalent to a 59% IRR.

Under the GP's tenure, the company invested in its operations and IT infrastructure, expanded its senior management team and undertook an acquisitive growth strategy. In total it made three acquisitions, including the bolt-ons of Gloucester-based companies Window Widgets and Eclectic Systems in April 2015. Since NorthEdge's initial investment, the group has increased its headcount from 130 to 300.

Under its new owners, DW3 will expand its distribution network.

Previous funding
NorthEdge first invested in DW3 (then known as Solidor) in October 2014 with capital drawn from its £225m first fund. The GP then provided follow-on funding to support the acquisitions of Window Widgets and Eclectic Systems in April 2015.

Company
Headquartered in Stoke-on-Trent and founded in 2004, DW3 manufactures composite doors and windows. The business generated a turnover of £45m in 2017, according to a statement, and has a headcount of 300.

People
NorthEdge Capital – Jon Pickering, Ray Stenton (partners); Greg Holmes (investment executive).
DW3 Products – Gareth Mobley (CEO).

Advisers
Vendor – Clearwater International, Jon Hustler, Rob Britton, Constantine Biller, Alex Brindley (corporate finance); Eversheds Sutherland, Andy Phillips, Helen Tsang, Sam Jones (legal).
Company – EY, Richard Harding, Stuart Thwaites, Mohammad Khalid, Adele Hickling, Linda Marston-Weston (financial due diligence); CIL (commercial due diligence).