Generic manufacturing

Jablite

The UK's largest expanded polystyrene manufacturer

The Business

Jablite is the UK’s largest producer of expanded polystyrene (EPS) insulation products.

The Deal

Jablite was a subsidiary of a larger European EPS maker, which was sold piecemeal by its private equity owners. We provided a combined debt and equity investment of £5 million in addition to arranging a £16.5 million sale and leaseback of the company’s property portfolio. This was a complex transaction that included separation of the UK operations from that of its European parent and the carve-out of two defined benefit pension schemes.

The Plan

The investment was significantly de-risked with £3.5 million of the £5 million investment being repaid to the VCTs within five months of completing the deal, at a time when the UK construction market was recovering from a low point during the recession. The focus is now on seeking fresh ways to engineer the product to reduce manufacturing costs.

The team behind the investment

You may also be interested in...