Crest Capital to sell Gardengate to Equistone

Equistone Partners Europe has agreed to acquire Gardengate from Crest Capital Partners.

Equistone Partners Europe has agreed to acquire Gardengate from Crest Capital Partners. No financial terms were disclosed. Based in Braga, Portugal, Gardengate is a maker of aluminum gates and doors.

PRESS RELEASE

Paris, October 18th, 2021 – Equistone Partners Europe (« Equistone »), one of Europe’s leading mid-market private equity firms, today announces that it has acquired a majority stake in Gardengate, a leading European manufacturer of aluminium gates and doors. Crest Capital Partners will retain a minority stake alongside the founder and management team.

Founded in 1997 in Braga, Portugal, Gardengate has established a strong position within an attractive market and achieved robust and consistent year-on-year growth. By focusing on innovation, product quality, and service delivery, the group’s experienced management team has developed relationships with key French DIY players and built a strong position in the French market, which currently accounts for 85% of the group’s sales.

The company has performed well throughout the pandemic and is on track to achieve c.€90 million turnover in 2021, representing an 18% CAGR over the 2016-2021 period. In addition to the group’s success in France, Gardengate has also reported fast-growing sales in Benelux, Germany, and the UK.

Leveraging its strong European network, Equistone intends to support Gardengate’s growth strategy in a number of ways: expanding into new or underpenetrated geographies including Benelux, Germany and the UK; widening its product range; and continuing to develop and optimise its growing online presence. Equistone will also provide support as the company looks to regroup the majority of its Portuguese production units under the same roof to increase production capacity and enhance profitability.

Adelino Costa, CEO and founder of Gardengate, said: “We intend to grow Gardengate and reinforce the group’s prominent position in the production of equipment for the outdoor environment of the home, and believe that Equistone is the right partner to achieve this goal. I would also like to thank Crest for consistently supporting the management team’s efforts to develop the business and for its support in the transition from a family structure. ”
Thierry Lardinois, Partner at Equistone, said: “Gardengate is a highly successful European industrial company that we have been able to evaluate thanks to our previous experience in that sector. We look forward to backing the management team and supporting the group as it continues its impressive growth journey in France and abroad, as the company works towards becoming a European leader.”

About Gardengate
Founded in Braga, Portugal, in 1997, Gardengate is a leading European manufacturer of aluminium-based garden gates and house entry doors. Gardengate’s export-led strategy allowed the company to establish a long-lasting foothold anchored on stable relations with key clients in France (85% sales), the leading European market in this segment, and has positioned the company to benefit from growth in neighbouring rapidly developing markets for aluminium garden gates, such as Germany and the Benelux.

The company has a workforce of over 600 employees spread across 9 modern units located in the North of Portugal.