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H.I.G. European Capital Partners, LLP
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H.I.G. Europe Announces Investment in Synseal
LONDON - February 24, 2010 - H.I.G. Europe, ("H.I.G.") the European affiliate of H.I.G. Capital, a leading global private equity investment firm, today announced its acquisition of Synseal Extrusions Limited ("Synseal"), the UK's leading supplier of PVC-U for windows, doors and conservatories, from its founder, Gary Dutton MBE.
Founded in 1980, Synseal provides PVC-U extrusions to over 700 independent fabricators in the UK. It employs around 500 people and is based near Nottingham. In 2009, the company reported revenues in excess of £75 million.
The transaction will see the management team of Synseal, led by Chief Executive Officer, David Leng, take a significant equity stake in the business. H.I.G. will work closely with management to support the company's existing growth strategy focused on servicing existing customers and winning new customers, as well as helping the business to increase its penetration in the new build and commercial property markets.
A debt package, led by Yorkshire bank, was put in place and contributed to by H.I.G. in order to allow an accelerated completion of the acquisition. The full financing package will enable H.I.G. to support Synseal's continuing operational improvement program as well as the company's organic and acquisitive growth plans.
The H.I.G. deal team was led by Paul Canning and Andrew Steel.
"We are very pleased to announce our investment in Synseal, a best in class business led by an excellent management team," commented Paul Canning, Managing Director at H.I.G. "We believe that with the resources H.I.G. brings, coupled with the strength of the team, Synseal is well placed to drive consolidation in the market and to further build on its position as a leading supplier in the UK."
"Our partnership with H.I.G. is a significant step in the development of the company, commented David Leng, CEO of Synseal." We have maintained our competitive advantage over the past few years and look forward to maximizing the growth opportunities that the market will present going forward. This is an exciting time for our business, staff and existing customers."
Andrew Steel, Principal at H.I.G., who has a significant background in the building materials industry, added, "Synseal has been a stand-out performer in a difficult market during the past two years. We are delighted to back the current management team plans for expansion."
Synseal is the UK's number one supplier of PVC for windows, doors and conservatories, with around 500 employees from a 32 acre site in Huthwaite. Synseal is known in the industry as highly efficient in all aspects of production and distribution, giving customers excellent products delivered in exceptional turnaround times. This service has taken Synseal to the top of the industry for both windows and conservatories, the only company to hold both number one positions. www.synseal.com
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, New York, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 50 companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.