Mobeus keeps building its portfolio
Mobeus Equity Partners has provided a £5m combined debt and equity package to support the management buyout of two leading UK Expanded Polystyrene (“EPS”) businesses out of the Synbra Group:
• Jablite – the UK’s largest producer of EPS products used by the construction industry to enable buildings to meet ever more stringent environmental standards for insulation ; and
• Styropack – the leading UK brand in EPS packaging for the fish, horticultural and white goods industries.
The acquisitions create a new company that is the largest EPS manufacturer in the UK, with combined annual sales in excess of £40m and 140 employees across the UK.
With constant pressure to improve the environmental performance of buildings and all political parties in the upcoming General Election committing to a step change increase in the construction of new homes, Mobeus believes the prospects for the business are extremely positive.
The transaction represents Mobeus’s third investment of 2015, taking committed capital to in excess of £20m in the past 4 months. It follows a very successful 2014 for Mobeus with £32m invested into six companies, and seven investments realised generating cash profits of over £60m to investors.
The deal was introduced to Mobeus by Steve White of Grant Thornton in Milton Keynes.
Richard Lee (CEO of Jablite and Styropack) said:
"I’m delighted to be the co-owner and managing director of the largest EPS supplier in the UK. This has been made possible by our backers Mobeus Equity Partners. We hit it off with Richard Babington and the Mobeus team immediately and it was quickly apparent that their ambitions to grow our business are in line with our own plans. We’ve forged a great partnership already and I expect this to help drive our new business going forward."
Richard Babington, Investment Director at Mobeus, commented:
“We are delighted to back an experienced and successful team and the dominant EPS manufacturer in the UK. Richard Lee started work as a 17 year old in the Styropack business and 29 years later when he got the opportunity to buy it we didn’t hesitate to provide a comprehensive funding package to facilitate the transaction. Central to the Mobeus investment approach is the belief that at key moments in the life of your business, we can help; this is a perfect example.”