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CBPE backs Allied Glass MBO

The UK private equity house has teamed up with Bank of Scotland to invest in a management buyout of the glass containers division of Associated British Foods.

Close Brothers Private Equity (CBPE), the UK private equity firm which closed a £200m mid-market buyout fund earlier this year, has made its latest acquisition in the UK, backing a management buyout of Allied Glass Containers (AGC) from Associated British Foods.

 

The price for the business, a manufacturer of glass bottles and other glass containers predominantly for the spirits and specialist food markets, has not been disclosed.

 

AGC, whose customers include UK household brand names such as Diageo, William Grant & Sons and HP Foods, reported an annual turnover of £57.5m last year and has net assets of around £40m. The business employs 580 people across its two manufacturing sites located in Leeds and Knottingley.

 

CBPE partner Iain Slater, who will join the AGC board as a non-executive director, said: “We are backing an experienced management team led by Andrew Spencer, who has been MD since the mid 1980’s. Our investment in the business will enable AGC to develop further its niche market position in the UK’s alcoholic beverage industry and widen its export markets.”

 

CBPE typically invests in companies with a capitalisation of between £10m and £70m. To date, its sixth fund has invested over £100m of the fund total in ten investments. Investments from Fund VI have included the acquisition of Aroma & Fine Chemicals, Gradus and Park Resorts. Last month, the firm appointed two investment managers, Ted Bell and Mathew Hutchinson, which expanded the team to 13 executives.

 

RSM Robson Rhodes advised CBPE and management on the transaction. Bank of Scotland provided an undisclosed amount of senior debt.