Close Brothers Private Equity (“CBPE”), the UK mid-market private equity specialist, has exchanged contracts on the  financing of the secondary buy-out of Upperpoint Distribution Limited, Europe’s largest CCTV distributor.  The purchase from previous owners, PPM Capital, is valued at £128m and is subject to regulatory clearance.

CBPE is backing the incumbent management team, led by Alun John, CEO and Bill Lazarus, CFO. The team will be re-investing a substantial proportion of their embedded equity value in the new structure.
 
Upperpoint Distribution Limited, which operates under the Norbain brand in the UK and is based in Reading, specialises in supplying CCTV equipment covering both third party brands as well as its own brand, Vista, one of Europe’s leading CCTV brands. The business, which generated revenues of £128m in the year to March 2005, employs c350 personnel and has market leading operations in the UK, Portugal and South Africa.  It occupies a “natural” distributor position in these markets, servicing a highly fragmented base of equipment installers and providing a route to market for a wide range of equipment suppliers.

Neil Murphy, a Partner with CBPE who worked on the transaction with Investment Director Mark Perryman, commented:

“The Upperpoint acquisition underlines our focus on well-positioned UK businesses.  It is clear market leader in a sector which is growing strongly and has consistently grown its profitability.   We are backing a management team that has proved itself over a long period of time and who are eager to have another go.”

Alun John, Upperpoint CEO, said:

“The business has seen rapid growth in the past few years and we have enjoyed our time under PPM Capital’s ownership.  Equally the management team is keen to take the business through its next phase of growth in what we think is a very favourable market.  We’re looking forward to doing this alongside CBPE.”  CBPE were advised on the transaction by NM Rothschild, with management receiving financial advice from Jamieson Corporate Finance.

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For more information contact: 

Close Brothers Private Equity
Neil Murphy: 020 7065 1120
Mark Perryman: 020 7065 1124
 
This press release has been issued by Close Brothers Private Equity LLP.