CBPE Capital (“CBPE”) is pleased to announce an investment in Allied Glass Containers (“Allied”), the leading manufacturer of premium glass bottles and containers for the food and drink market. Terms of the transaction were not disclosed.
Allied specialises in short, flexible production runs with a focus on serving premium markets, particularly within the spirits industry. The business also undertakes design and prototyping work to help customers with their product redesigns and new product launches.
Allied has an impressively consistent track record of revenue and earnings growth over the past decade. The business has benefitted from a move towards increasingly sophisticated packaging, together with strong international demand for products such as Scotch whisky and the company today makes many of the bottles for the world’s best known premium whiskies.
Allied fits with CBPE’s core investment criteria; it is a market leading business with an international customer base and proven management team in a market which has demonstrable long term growth fundamentals.
This is the second time that CBPE has invested in Allied and backed its management team, having first invested in 2002 at the time of the original buyout from ABF plc. Allied was subsequently successfully sold to Equistone Partners Europe in 2010. When Equistone in turn decided to realise its investment earlier this year, Allied’s management was keen to work with an investor whose investment style they knew and who shared their desire to capitalise on emerging international growth opportunities.
CBPE’s prior knowledge of Allied’s market and its long term relationship with management enabled it to start offmarket negotiations and complete a transaction outside a formal process.
The investment was co-led for CBPE by Mathew Hutchinson and Iain Slater. CBPE has a strong track record of investing in the industrials sector. Previous investments include BWA Water Additives and Minova International. Current investments in the industrials sector include Warwick Chemicals, a leading manufacturer of speciality chemicals.
Alan Henderson, CEO of Allied, commented:
“We are delighted to have the opportunity of working with CBPE. We have known them for many years and we are very confident they are the right partner for us as we enter the next phase of our development.”
About CBPE Capital
• CBPE Capital is a leading private equity firm with eight funds raised over 29 years.
• Investments are typically made in companies seeking growth or development capital, with equity investments of £10m to £80m.
• It is currently investing its latest fund, which closed in February 2010 at £405m.
• CBPE has made 8 investments in this fund, to date all being primary buyouts.
About Allied
• Manufacturer of premium glass bottles and containers.
• The business operates from two manufacturing sites based in Leeds and Knottingley in West Yorkshire, with 682 employees.
• Allied Glass was owned by ABF plc from 1966 to 2002.
• CBPE originally acquired Allied in 2002 and exited to Equistone Partners Europe in 2010.
• Key customers are the leading spirit brand owners.
• Customers are increasingly focusing on differentiating their brands through the use of more sophisticated bottles and packaging.
• International growth is driven by strong demand for branded spirits in emerging markets.
