Close Brothers Private Equity acquires Laybond Holdings Ltd from Jarvis Plc for a cash consideration of £16.6m

Close Brothers Private Equity, the leading mid-market private equity business of Close Brothers Group, announces that it has acquired Laybond Holdings Ltd. (“Laybond”) from the infrastructure services division of Jarvis Plc for a consideration of £16.6m in cash plus the allotment to Jarvis of 8% of the equity of the Newco acquisition vehicle.

Laybond is one of the UK’s leading manufacturers of flooring adhesives, roofing systems and general building products. The company’s brand portfolio includes Gripfill™, the brand leading gap-filling adhesive, Screedmaster smoothing compounds, the Quickstrip carpet release system and Aquamac roof coatings. Products and systems are distributed through flooring and roofing distributors and builder’s merchants.

The company also has an active product development programme and has launched a new instant roof waterproofing compound called Flexacryl™ and the range of Diamond High Performance Roofing Systems in the past twelve months.

Close is backing a strong management team led by Managing Director, Richard Ewing, who has worked in the business for over 20 years. In the year to 31st March 2001 Laybond is expecting to achieve sales of £23m and profit before interest and tax of approximately £2.5m.

The transaction will be financed by way of new funds from CBPE and a senior debt and revolving credit facility of 10.7m provided by HSBC.

CBPE will have 77% of the equity of the company. The balance of the equity is held by the management team with 15% and Jarvis Plc with 8%.

Commenting on the deal, Sean Dinnen of CBPE, who will join the board of Laybond said:
“We are delighted to have funded the acquisition of a high quality business such as Laybond. It has first class products, many of which are clear leaders in their market place, and impressive plans for growth under a management team who have vast experience of the building materials market and the opportunities it provides.”

Richard Ewing, Managing Director of Laybond, added:
“This is a great move for the company. We now have the opportunity to move the business forward with new confidence, both through organic growth, internal product development and, potentially, through acquisition or joint ventures.”

“Close Brothers Private Equity share the management team’s vision for the future of the company and recognise that our markets continue to grow and that there is significant potential within Laybond.”