Equistone Partners Europe has sold Yorkshire-based bottle manufacturer Allied Glass back to its former owner, CBPE Capital, generating a return multiple of more than 2.5x, according to a statement.
Equistone sold Allied for between £120 million (€143 million; $192 million) and £130 million, according to a source familiar with the matter. Allied specialises in the production of glass bottles and other glass containers for brands including Johnnie Walker, MaCallan and Smirnoff and employs over 660 people across two factory sites in the UK. HSBC, Lloyds TSB, Investec and GE provided debt financing for the deal.
Allied’s management team will retain a significant stake in the business as part of the deal. Equistone acquired Allied from CBPE as part of a £75 million management buyout in 2010. Equistone invested in the company using capital from its €1.8 billion Fund III.
Equistone helped generate strong year-on-year growth at Allied by focusing the business on the premium spirit sector, supporting its export strategy and investing in the company’s Knottingley factory to boost production.
CBPE invested in the business using its £405 million Fund VIII. Following the acquisition of Allied, there have been 9 investments made from this fund.
When Equistone decided to realise its investment earlier this year, Allied’s management team was keen to work with an investor whose investment style they knew, according to a CBPE statement. CBPE first backed Allied’s management team in 2002.
CBPE typically invests in companies seeking growth or development capital. It invests between £10 million and £80 million of equity per deal.
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