HIG injects £30m equity into window deal

The European arm of US private equity firm HIG Capital sees manufacturing firm Synseal as a platform for consolidation.

HIG Europe, the European affiliate of HIG Capital, has agreed to acquire Synseal Extrusions from its founder Gary Dutton. The private equity firm is to inject £30.5 million (€35 million; $47 million) into the deal alongside a debt package provided by Yorkshire Bank. The total deal value has not been disclosed.

Synseal is a UK provider of materials for windows, doors and conservatory roofs. It employs around 500 people and achieved sales of £76 million in 2009.

The HIG deal team was led by Paul Canning and Andrew Steel, supported by Alastair Mills. “With the resources we bring coupled with this team, Synseal is well placed to drive consolidation in the market,” said Steel in a statement.

Steel said the business had been a “stand-out” performer during a downturn that has been tough on companies in the building products sector. Last year saw Monier, a French manufacturer of roofing products, forced into a protracted restructuring process resulting in its financial sponsor, PAI Partners, losing its stake in the business.

HIG closed a €600 million European fund in July 2007. Its distressed debt affiliate, Bayside Capital, closed a $3 billion fund last year.