NVM Private Equity has sold IG Doors, a manufacturer of composite external doors for the housebuilding industry, to the Hörmann Group, a family-owned German manufacturer of residential and industrial doors. The sale represents an IRR of 17.3 percent per annum and a money multiple of 3.3x on NVM’s original investment.
NVM Private Equity (NVM) has successfully sold IG Doors, a manufacturer of composite external doors for the housebuilding industry, to the Hörmann Group (Hörmann), a family-owned German manufacturer of residential and industrial doors. The acquisition of IG Doors will help Hörmann to strengthen its presence in the UK market and in turn help IG Doors to develop new market opportunities. The sale represents an IRR of 17.3% per annum and a money multiple of 3.3x on NVM’s original investment.
IG Doors has been supplying an extensive range of high performance steel and glass reinforced polymer (GRP) external doorsets from its manufacturing facility in Cwmbran, South Wales for over 30 years. The company employs 181 staff and is now the largest manufacturer of composite door sets in the UK — with a number one position in the new-build residential market and an ever increasing presence in social housing development.
NVM originally funded the management buy-out of IG Doors and ongoing development of its manufacturing capabilities, in order to increase its exposure to the social housing sector. This area of the market has delivered considerable growth to the company and IG Doors now holds a significant share of the social sector refurbishment market. The business has also been supplying to new-build developments since inception and is a well-established player in this sector. Despite the economic climate between 2009 and 2011, IG Doors has seen a 54% increase in turnover during this period.
Mark Pulman, Managing Director of IG Doors comments: “We have invested heavily to improve our manufacturing capabilities and production equipment over the years. This has helped us to stand out from our competitors by offering a flexible and cost-effective product range backed up with outstanding service. IG Doors has successfully penetrated the social housing sector, so we are keen to build on this and also reach out to new markets. Joining together with Hörmann will help enormously in accelerating this process. The sale is extremely well-timed for our business growth and NVM has offered dedicated support over the years.”
Martin Green, Managing Director of NVM Private Equity: “We are delighted to see Mark Pulman and the team entering into their next stage of development with Hörmann. The management team have all been with the business for over ten years and have unrivalled sector knowledge. They are committed to driving growth and entering their target markets, so we wish them the best of luck for the future. We are also pleased that the sale represents a significant return for the shareholders of NVM’s funds.”
The sale represents an exit for NVM’s funds: Northern Venture Trust PLC, Northern 2 VCT PLC, Northern 3 VCT PLC and Northern Investors Company PLC – all of which co-invested in NVM’s investment in IG Doors.
Ernst & Young’s Corporate Finance team, led by Richard Jones, acted as lead advisor to the vendors on the transaction. “NVM and the management team have worked together to build a market leading business with a proven record of growth through difficult market conditions. It was a pleasure to work with the IG Doors team and we are delighted to see the business join forces with one of the leading door manufacturers in Europe.”
NOTES TO EDITORS
Ernst & Young (Financial adviser to NVM and management) – Richard Jones, Luke Hardcastle
Osborne Clarke (Legal adviser to NVM and management) – Alisdair Livingstone, Simon Jones, Simon Spooner, James Taylor, Michael Bell, Mark Braude
Trowers & Hamlins LLP (Legal adviser to buyers) – Amir Hashemi, James Johnson
CatCap (Financial adviser to buyers) – Daniel Dies
Inclusions: Photo of Mark Pulman, Managing Director of IG Doors. Imagery of IG Doors’ manufacturing facilities are available on request. Please contact Liberty Bollen on 0118 951 7017 or e-mail email@example.com.
IG Doors Limited has supplied the house building industry with an extensive range of high performance composite external doorsets in both steel and glass reinforced polymer (GRP). These products provide the combined thermal insulation and minimal maintenance characteristics that are demanded by both major house builders and regional developers as they strive to meet the ever increasing demands of the industry in the twenty first century.
Operating from a state of the art manufacturing facility based in Cwmbran, South Wales, IG Doors has both the capacity and flexibility to provide a nationwide service that is regarded in the industry as being second to none, together with a reputation in providing solutions to the often complex requirements of the house builder, whatever the project size.
IG Doors is acutely aware of its responsibilities to the environment and continually strives to ensure that it complies with environmentally acceptable practices throughout all of its operations. Part of this initiative has led to the core range of products meeting the Code for Sustainable Homes criteria.
An ever increasing programme of investment, innovation and product development ensures IG Doors’ continued reputation as market leaders with a commitment to provide a package of product and service that is truly Designed to Perform. www.igdoors.co.uk
The Hörmann Group is an international, fast-growing company in the construction supplier industry. Residential hinged and garage doors and operators are manufactured along with a range of industrial doors and loading bay equipment for markets in Europe, North America and Asia at 16 highly-specialised factories. Employing more than 6,000 staff, this 100% family-owned company has achieved over 1 billion euros in sales. The Hörmann Group owns two other companies in the UK namely Hörmann UK (www.hormann.co.uk) and Garador (www.garador.co.uk).
NVM Private Equity Limited (NVM) is independently owned with over 28 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing £220 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2 million and £10 million in each transaction.
For further information please contact:
Liberty Bollen (NVM: PR & Marketing) – 0118 951 7017 firstname.lastname@example.org
Martin Green (NVM: Managing Director) – 0118 951 7000 email@example.com