Mobeus backs Jablite and Styropack MBO with £5m

Mobeus has yet to comment on the value of the transaction, but market sources place it at £26m.

Aside from the £5m equity and debt package from the London-based GP, the deal featured a £16.5m sale-and-leaseback scheme arranged with Brydell Partners.

Meanwhile, the remaining £4.5m came in the form of an invoice discounting facility by Lloyds Commercial Finance and a contribution by Jablite's management team.

Mobeus invested via its Mobeus Income & Growth VCT, Mobeus Income & Growth 2 VCT, Mobeus Income & Growth 4 VCT and Income and Growth VCT vehicles. The GP secured a 40% shareholding in the new business, while management picked up the remaining 60%.

The transaction, which features the creation of newco Duncary 16, was completed on 23 April, according to Mobeus. The buyout house was first contacted by Grant Thornton director Steve White in May 2014, five months after Jablite's management began negotiating a deal in late 2013.

The off-market talks took almost a year as there was a need to carve out two pension schemes that will continue to be overseen by Gilde, according to the GP.

Mobeus stated it was attracted by the potential for growth within the UK, as the country's candidates vow to increase funding for housing projects in the run-up to the general election in May.

The business resulting from the acquisition of Jablite and Styropack will employ a total of 140 employees and is expected to generate £40m in annual turnover.

Previous funding
Both Jablite and Styropack are subsidiaries of Gilde-owned Synbra Group. The Netherlands-based GP, which declined to comment on the current transaction, acquired a 50% stake in the group from Royal Dutch Shell in 1999.

In August 2006, Gilde secured all remaining shares from Dutch listed company Royal Ten Cate. Under Gilde's ownership, the EPS manufacturer has undertaken a number of acquisitions and exited its horticultural operations.

Company
Founded 1973, Jablite is an EPS insulation products manufacturer serving the construction sector, while Styropack offers an EPS packaging product range to the seafood, horticultural and white goods sectors. Both businesses share headquarters in Belvedere, UK.

People
Investment director Richard Babington, who will be joining Jablite and Styropack's board, led the deal for Mobeus Equity Partners. Meanwhile, Jablite and Styropack were represented by CEO Richard Lee, chairperson John Colley, operations director Wayne Brown and finance director Ken Hutchins.

Advisers
Equity – Marriott Harrison, Jonathan Leigh-Hunt, Jon Sweet, Duncan Innes, Mark Lavers (Legal); Baker Tilly, Rebecca Guerin, James Killing (Financial due diligence); Fairgrove Partners, Paddy Woods Ballard (Commercial due diligence); PwC, Schyok Zafar (Tax); Doherty Baines, Robert Nelson (Property due diligence).
Management – Grant Thornton, Steve White, Nehal Patel (Corporate finance); Shoosmiths, Sanjeev Sharma (Legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Buyouts
• Industrials
• Exits
• United Kingdom
• Mobeus Equity Partners
• Gilde Buy Out Partners
• Partial sale