Rutland goes for underlay consolidation

Rutland has completed the acquisition of Duralay and Tredaire

Rutland Fund Management Limited has completed the joint acquisition of the Duralay and Tredaire flooring underlay businesses in a move which it hopes will enable it to establish one of Europe’s leading underlay manufacturers.

Rutland has formed a new company, Interfloor Group, to acquire the two UK firms, Duralay from Cinven and Gates Consumer and Industrial from Tomkins plc, for a combined purchase price of £60m, of which £40m is equity and the remainder debt.

The company says that the combined firm will be the market leader in Europe for the supply of underlay for carpets and laminated flooring. Rutland also hopes to turn Interfloor into Europe’s largest underlay manufacturer.

To date the Rutland Fund has made three investments including Wolstenholme a manufacturer of pigments and coatings for the print and plastics industries; Openshaw, which distributes print supplies in the UK; and Edinburgh Woollen Mill a UK clothing retailer for which it paid £49m in July last year.

The Rutland Fund closed last year at £210m and looks to make investments of between £15-40m in underperforming companies. Rutland Trust has a £100m total commitment to the Rutland Fund.