Close Brothers Private Equity Limited (“CBPE”) announced today its support for the management buy-out of Yorkshire-based Allied Glass Containers (“AGC”).

AGC, which has been acquired from Associated British Foods plc, is a specialist, high quality manufacturer of glass bottles and other glass containers predominantly for the spirits and specialist food markets. Its customers include Diageo, William Grant & Sons and HP Foods.

AGC was formed in 2000 when Lax & Shaw, acquired by Associated British Foods in 1966, was merged with Gregg & Co, which it had bought in 1993.

AGC has an annual turnover of £57.5m, net assets of c £40m and employs 580 people across its two manufacturing sites located in Leeds and Knottingley. A leader in its core market, AGC manufactured over 500 million glass containers in 2002.

Commenting on the deal, Iain Slater of CBPE, who will join the Board as a non-executive director, said: “We are backing an experienced and capable management team led by Andrew Spencer, who has been MD since the mid 1980’s. Andrew has been instrumental in growing the business from c. £5m turnover in the 1980’s to the c. £60m turnover today. Our investment in the business will enable AGC to develop further its niche market position in the UK’s alcoholic beverage industry and widen its export markets.”

Andrew Spencer said: “Close Brothers’ and Bank of Scotland’s enthusiasm to support Allied Glass provides us with a terrific opportunity to build on our excellent customer and employee relationships and achieve our full potential as an important independent glass packaging supplier”

RSM Robson Rhodes’ John Nutton, who advised management and CBPE on the investment, said: “Despite a relatively quiet deals market in 2002, this MBO demonstrates that the right proposition will always secure finance. The MBO provides Andrew and his team with the opportunity to further develop the business and build on the impressive growth record of the past.”

Bank of Scotland Structured Finance, Michael Allen said, “We are delighted to provide the funding for this MBO as it highlights the bank’s ability to support Yorkshire companies in their own back yard.”

Enquiries

Iain Slater – Close Brothers Private Equity
Tel: 020 7426 4000
Adrian King/Barnaby Fry – Flagship Consulting
Tel: 020 7886 8458/8459

This press release has been issued by Close Brothers Private Equity Limited. Close Brothers Private Equity Limited is regulated by the FSA.