Catalyst advise on the management buy-out of Synseal Extrusions Limited

Keith Pickering, Catalyst, David Leng CEO, Synseal, Brian Onions, Finance Director, Synseal and Leigh Daveran, Catalyst

Catalyst has acted as lead advisor on the management buy-out of Synseal Extrusions Limited.

Founded in 1980, Synseal is the UK's leading manufacturer of conservatory roof kits and extruded PVCu profile for window and door systems. The business supplies over 700 independent window and door fabricators and installers across the UK. Employing over 500 people from its base near Nottingham, the business reported sales of £76 million in 2009.

Following previous attempts to sell the business by other advisors, Catalyst identified that the way to achieve a successful deal was to find a new CEO and for that person to then lead a management buy-out at a price acceptable to the owner of the business, Gary Dutton MBE.

Using our wide network within the building products and distribution market, we introduced David Leng to the business in late 2008 and he was appointed CEO in January 2009. After a settling-in period of 6 months, Catalyst assisted him negotiate both a price and a process that would secure a private equity funder for a management buy-out. We then worked with David's chosen private equity firm, H.I.G. Capital, to secure a debt package put together by Yorkshire Bank which, along with H.I.G’s further committed funding, will support Synseal’s continuing operational improvement programme as well as the company’s organic and acquisitive growth plans.

Keith Pickering, Partner at Catalyst, who led the deal along with Leigh Daveran, commented, "I am delighted that our process has delivered the objectives of all the parties. Management were central to the decision making process of the deal and chose their preferred funders. The vendor secured the deal he wanted and H.I.G were allowed an "Access All Areas" and exclusive diligence process necessary to support the agreed deal in a challenging trading and banking environment. An old-fashioned buy-out which allowed us to demonstrate the core values of Catalyst - experience-led, quality advice which gets a deal done."

David Leng, Chief Executive commented, "We have maintained our competitive advantage over the past few years and look forward to maximising the growth opportunities that the market will present going forward. This is an exciting time for our business, staff and existing customers."

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