HL Plastics (HLP) has been acquired by Quanex Building Products Corporation (NYSE: NX). Clearwater International advised the HLP shareholders on the deal which is worth €128m.
HLP designs and manufactures world class PVCu extrusions at its state of the art factory in the Midlands. HLP has seen substantial growth in recent years, in no small part due to the launch of the Liniar range in 2008. A business with over 40 years’ heritage, HLP has continued to grow and innovate both organically and via acquisition.
Quanex is headquartered in Houston, Texas with locations all around the world. An industry-leading manufacturer of engineered materials and components for building products sold to Original Equipment Manufacturers (OEMs), Quanex designs and produces energy-efficient window and door products, systems and solutions. Quanex places a special emphasis on supplying innovative new products to the fenestration industry.
The purchase of HLP will strengthen Quanex’s growth strategy; profitability in the core businesses supported by the acquisition of new businesses which contribute new technologies, products and enhanced scale. The acquisition will deliver on all these fronts, contributing to top and bottom line growth, an expanded presence in the favourable UK market, and access to new and complementary product lines.
HLP’s management team, led by Roger Hartshorn, will remain in place following the sale.
Clearwater International advised HLP on the deal. The team was led by partners Jon Hustler and Rob Britton, supported by associate director Alper Dervish. Clearwater is actively involved in other deals in this sector.
Roger Hartshorn, Group Managing Director at HLP, commented: “Quanex enjoys a prominent position as a leading component supplier to the fenestration industry and as such represents a logical and compelling strategic fit for HLP at a beneficial time in the UK housing market. I am excited about our future with Quanex.
“By remaining financially involved and continuing as Group CEO, I am ensuring it will be ‘business as usual’ for staff and customers alike. My commitment has always been to launch new and exciting products for the benefit of our customers and to generate employment opportunities to stimulate the economy – and with Quanex resources behind us, we will unlock the potential to achieve even greater success.”
Jon Hustler, Head of Industrials at Clearwater International, said: “HL Plastics is a superbly run, efficient operation – delivering an industry-leading quality product and great customer service.
“It has grown strongly over recent years and I believe that under the stewardship of its new owners, it will continue to go from strength to strength.
“We feel privileged in being able to play a part in this important next step of its development.”