Graphite earns 3.2x return on sale of U-POL to ABN AMRO

Guy
21 December 2005

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Graphite Capital, the mid-market private equity specialist, has agreed to sell U-POL, the UK’s leading automotive refinish manufacturer, to ABN AMRO Capital in a deal which values the business at £75m. The transaction, which is expected to complete in early 2006, provides Graphite with a total return of 3.2 times its investment and an internal rate of return of 55%.

Graphite acquired a majority stake in U-POL when it backed the management buyout of the business in September 2002. Since then, U-POL has achieved a strong growth record with turnover rising 31% to an expected £30 and profits increasing by 58% in the three years to 2005.

Established in the mid-1950s, U-POL has built up an innovative and diversified product portfolio of fillers, coatings, aerosols and adhesives which provide a one-stop solution to more than 2,200 customers. Purpose-built production facilities are located in Wellingborough, Northamptonshire with the UK sales team based in North London and a worldwide network of distributors.

U-POL’s products are aimed at the professional automotive repair market in 80 countries across five continents. The business has a market leading position in the UK filler market and strong and expanding positions in many European and African countries. U-POL has an impressive history of investment in research and development, and since 2002, has expanded its product range into new high growth areas.