Alcuin Capital BacksTileco Group MBO as Graphite Capital Exits

UK lower middle market investor Alcuin Capital Partners has backed a management buyout of TileCo Group, a supplier of tile, mosaic and stone products to the residential developer and architectural specification markets. The transaction is also supported by funding from the management team and debt provided by Centric Commercial Finance. It provides a successful exit for UK mid-market private equity specialist Graphite Capital.

PRESS RELEASE

Alcuin Capital Partners has backed a management buyout of TileCo Group, the UK’s leading supplier of tile, mosaic and stone products to the residential developer and architectural specification markets. The transaction is also supported by funding from the management team and debt provided by Centric Commercial Finance. It provides a successful exit for leading UK mid-market private equity specialist Graphite Capital.

TileCo trades under two widely recognised and complementary brands, Domus and Surface. The Group is actively involved in a wide variety of premium construction projects within the UK and internationally, including commercial, office, infrastructure and high-end private residential applications.

Jon Newey, CEO of TileCo, commented: “This deal represents an outstanding opportunity for our business following a long and successful relationship with Graphite. We are currently enjoying strong trading across the Group and are confident about the future prospects for the business. We are very excited and optimistic about the growth opportunities that we have identified. Alcuin has already demonstrated an enthusiastic and supportive approach and therefore is an ideal partner for our team to deliver our plan.”

Adrian Lurie, Partner at Alcuin, said, “We are delighted to be investing in the business alongside Jon and his team and we look forward to working with them, supporting the business through the next stage of its growth. Domus and Surface both offer a quality product and service, and deservedly occupy an enviable market-leading position in the UK, with a growing number of international clients.”

Andrew Rutherford, director of Centric Commercial Finance, said “Our work with Alcuin Capital Partners providing both an invoice discounting line and cash flow facility for TileCo Group is a prime example of how Asset Based Lending is increasingly finding its place within the private equity community as an accepted form of funding for deal transactions. We were pleased to have been able to prove its worth.”

Jenny Michelman, Partner at Graphite Capital, added “We have been pleased to support Jon and his team as they have developed and grown the TileCo Group. Their talent and experience have enabled them to manage successfully the challenges of the recent economic downturn. The business continues to be a supplier of choice with an enviable reputation for innovation, quality and service.”

Alcuin was advised by Jones Day (legal), Ernst & Young (financial due diligence), Roland Berger (commercial due diligence) and BDO (tax advice). Graphite and the management shareholders were advised by Ernst & Young Corporate Finance and Taylor Wessing.

ENDS

For further information, please contact:
Alcuin Capital Partners Adrian Lurie
020 3178 5541; or
Neil Wilson
020 3178 5562

Graphite Capital: Jenny Michelman
020 7825 5300; or
Caroline Cecil, Caroline Cecil Associates
020 7610 4110

Centric Commercial Finance: Andrew Rutherford/ Greg McEwan
020 7182 4090

Notes to editors:

About Graphite Capital

Graphite is a specialist provider of private equity finance to mid-market companies in the UK. Graphite focuses on management buy-outs and buy-ins, expansion capital and turnaround opportunities. It invests in transactions with enterprise values of £25 million to £200 million. Graphite manages more than £1.2 billion through three private funds and the publicly-quoted Graphite Enterprise Trust PLC. The current fund, Graphite Capital Partners VII, is a £585 million fund raised in 2007. The fund’s investments include Alexander Mann Solutions, the global leader in recruitment process outsourcing, U-POL, a world leader in automotive refinishing products; London Square, a new house-builder focused on prime sites within the M25; NFA, the largest provider of foster carers in the UK; Explore Learning, the UK’s leading provider of tuition for primary school children; and Rex Restaurant Associates, operator of The Wolseley, The Delaunay and Brasserie Zedel restaurants.

About Alcuin Capital Partners

Alcuin Capital Partners (“Alcuin”) specialises in development capital and growth capital investments in the UK lower middle market. Typical investment range is between £2 and £10 million per transaction, although strong funding relationships allow it to invest more if required. Investment focus is on buyouts, buy-ins and recapitalisations, as well as providing growth or development capital.
Alcuin is a supportive, lead investor, with a strong preference for owner-managed businesses. It invests in both minority and majority transactions, focussing on working with excellent management teams. Managing a relatively small portfolio, it is able to offer advice and support in areas including international expansion, acquisitions, re-financing and exit.
Alcuin has a 20 year track record of successfully investing in this market segment and are currently investing The Third Alcuin Fund, which has commitments of approximately £100m.

About Centric Commercial Finance

Centric Commercial Finance is an independent Financial Services Group, focused on delivering Invoice Discounting and Asset Based Lending facilities for major business events such as MBOs, MBIs, acquisitions and refinancings.

With a portfolio of over 200 clients, Centric was named Asset Based Lender of the Year at the South East Dealmakers Awards 2012, Asset Based Lender of the Year at the Yorkshire Dealmakers Awards 2011 and Asset Based Lender of the Year at the Central & East of England Dealmakers Awards 2011.

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