CBPE exits Allied Glass

Harriet Matthews
06 January 2020

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CBPE Capital has sold its stake in glass packaging manufacturer Allied Glass to a vehicle funded by Sun Capital and the company's management.

Unquote understands that the exit generated an IRR of 10-15%.

CBPE acquired a significant minority stake in Allied Glass from Equistone in November 2013 in a deal that generated a money multiple in excess of 2.5x, valued at £120-130m. HSBC, Lloyds TSB, Investec and GE Capital provided a debt package for CBPE. The company's management retained a significant stake in the business.

CBPE invested from CBPE Fund VIII, which held a final close in January 2010 on £405m. The exit from Allied Glass will bring the fund's total realised portfolio companies to eight, according to Unquote Data. The fund still has three remaining current portfolio companies and has partially realised its investment in Medica Group via an IPO.

CBPE said in a statement that the company's revenues had increased by 13% per annum in the past three years. Growth and value creation opportunities came from the significant rise in market share by craft gin companies in recent years. CBPE also invested in decoration and coloured glass production facilities.

Previous funding
CBPE acquired Allied Glass in 2002 as part of its original buyout from Associated British Foods, which had owned the company since 1966. CBPE sold Allied Glass to Equistone in 2010, when the company reported a turnover of £84m.

In April 2017, Allied Glass underwent a refinancing worth £74m. Investec provided a debt package consisting of asset-based and cashflow lending, in addition to working capital. The repayment structure included a mixture of evergreen revolvers and an amortising term loan.

Company
Allied Glass manufactures glass packaging in short production runs and on a flexible basis. Its core customer base is the luxury spirits industry and it has more than 260 customers, including gin manufacturers such as Tanqueray. It is based in Yorkshire and employs 682 people. The business generates revenues of more than £107m.

The company's roots can be traced back to the Hope Glass Works of Knottingley, which was home to Gregg and Company, founded in 1874. Allied Glass merged with Lax and Shaw in 1999.

People
Allied Glass – Alan Henderson (CEO).

Advisers
Vendor – Baird (M&A); Addleshaw Goddard (legal); PwC (commercial & financial due diligence).