Kleinwort Capital backs Securistyle MBO

UK mid-market private equity firm Kleinwort Capital has backed the £35m buyout of Securistyle, a UK operator in the manufacture of window hinges.

Securistyle, which is a leading UK supplier to the architectural hardware market, has completed a £35m management buyout led by Kleinwort Capital.

 

The deal saw Kleinwort Capital invest £11.3m of equity, backed by £23m of senior debt provided by Bank of Scotland Corporate Banking.

 

Securistyle has a 35 per cent share of the UK friction hinge market and growing shares of the handles and locking mechanism markets. Founded in 1978, the firm, which has 334 employees, supplies its products to fabricators, specifiers and distributors. It is forecasting revenues of £26.5m in the year to 31 December 2003.

 

“We are excited by the huge potential of this company which will be further stimulated by the Government’s ‘decent homes’ standard, which will ensure continued refurbishment expenditure over the next 10 to 15 years,” said Andrew Hartley, a managing director of Kleinwort Capital. “As the leading specified producer, Securistyle will be a primary beneficiary of this initiative.”

 

The ‘decent homes’ standard is part of a Government drive to ensure all social sector tenants are in ‘decent’ homes by 2010, and reduce the number of tenants living in non-decent homes by one-third by April 2004. Criteria for a ‘decent home’ include ‘reasonably modern facilities and services’ and ‘a reasonable degree of thermal comfort’.

 

The deal involved Livingstone Guarantee (adviser to management and newco); CIL (commercial due diligence); Ernst & Young (financial due diligence); Aon (insurance and pensions due diligence); Macfarlanes, Lovells, Cameron McKenna and Simmons and Simmons (legal advisers); PricewaterhouseCoopers (vendor adviser); and KPMG (vendor due diligence).

 

Kleinwort Capital focuses on mid-market investments in UK growth companies worth between £10m and £100m in the technology, media, healthcare and specialist manufacturing sectors.