Barclays PE leads Fosbel MBO

Barclays Private Equity has backed a management buyout at UK furnace repair company Fosbel in a deal worth £24m.

Barclays Private Equity, the private equity unit of the UK bank, has maintained its high level of activity in the UK mid-market in 2003 with the acquisition of Fosbel, a furnace repair company based in Tamworth, Staffordshire.

Foseco, which is owned by Fosbel, which provides equipment and services to for foundries, and Glaverbel, a glass manufacturer based in Belgium, counts Corus and Pilkington Glass among its client base. Fosbel has operations in Germany, the US, Australia, Japan and Brazil. The company employs 350 staff. It is forecasting pre-tax profits of about £4.4m on sales of £28m this year.

 

Chief executive Derek Scott and finance director Simon Ellett have led management in the buyout, according to The Times. The management team will receive a 25 per cent stake in the business following the buyout, having invested £600,000. The deal was part-financed via a debt package from Bank of Scotland worth just under £13m and equity from Barclays Private Equity totalling £11m.

 

Barclays has also led a £35m buyout at PC-PoS, which provides cash registers and scanning products to UK retailers. Barclays paid £10m in equity for a 32.5 per cent stake. HSBC provided £16m of debt, with management providing the remainder.

 

So far this year, Barclays has completed a string of acquisitions of UK and European mid-market businesses. These have included The NCC Group, a company specialising in independent third party protection and storage of business critical software, SP Metal, a French plastic packaging manufacturer and a £147m buyout of Royal & SunAlliance’s healthcare and assistance insurance business.

 

The firm is investing the Barclays Private Equity European Fund which it closed on E1.25bn in December last year, including a E600m commitment from Barclays Bank.