Equistone makes 2.5x on sale of Allied Glass to CBPE

Alice Murray
11 November 2013

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Equistone Partners Europe has sold Allied Glass back to previous owner CBPE Capital in a deal understood to be worth between ТЃ120-130m, generating a money multiple in excess of 2.5x.

CBPE was able to initiate off-market discussions and complete the transaction outside of a formal process because of its previous history with the company. CBPE first invested in Allied Glass in 2002 when it supported its original buyout from ABF. When Equistone was looking to exit, Allied's management team approached CBPE.

The deal saw management retaining a significant stake in the company. CBPE will support Allied Glass in growing revenue from existing end markets.

Previous investment
Equistone (then Barclays Private Equity) acquired Allied Glass from CBPE in a deal worth £75m in August 2010. The deal saw Equistone investing £29.5m for a majority stake in the company, alongside a reinvestment from management and senior debt facilities provided by HSBC and Lloyds TSB.

During the three years under Equistone's management, Allied Glass completed a £3m investment in its manufacturing site in Knottingley to increase production. Furthermore, new finance director James Hart was appointed to bolster the management team.

Debt
Incumbent banks HSBC and Lloyds TSB were joined by Investec and GE in providing senior debt facilities.

Company
Established in 2000, Leeds-based Allied Glass manufactures specialist glass bottles and containers, mainly for the spirits and specialist food markets. It is especially dominant in the premium whiskey market. Notable customers include Johnny Walker, MaCallan and Smirnoff Vodka.

The company also carries out design and prototyping work to help clients with product redesigns and new product launches.

Allied Glass operates from two manufacturing sites in Leeds and Knottingley, West Yorkshire, and employs 682 people. It is the UK's fourth largest glass bottle manufacturer by volume.

The company was previously owned by ABF from 1966 to 2002.

People
Matthew Hutchinson and Iain Slater co-led the deal for CBPE. Steve O'Hare is a partner at Equistone and non-executive director at Allied Glass. Alan Henderson is CEO of Allied Glass.

Advisers
Vendor – Rothschild, Stephen Moore, Andrew Thomas (Corporate finance); Deloitte, Matt Henderson, Richard Bell (Financial due diligence); Eversheds, Robin Skelton, David Milne (Legal).
Equity – Addleshaw Goddard, Yunus Seedat (Legal).