Clearwater International advises Synseal vendor on multi-million pound sale

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Clearwater Advisor

Clearwater International has advised entrepreneur, Gary Dutton MBE, on the acquisition of his business, Synseal Extrusions Limited, the UK’s leading supplier of PVC-U windows, doors and conservatories, by private equity firm, H.I.G Europe.

Synseal, founded in 1980, provides PVC-U extrusions to be made into windows, doors and conservatory roofs, and supplies extruded products to over 700 independent fabricators in the UK. The business employs approximately 500 people at its headquarters in Sutton in Ashfield, near Nottingham, and reported sales of £76m in 2009. Known for its efficient production methods and distribution, Synseal began as a domestic installation company, diversifying to become a fabricator and, later, a systems company. The business’ commitment to quality and customer service has seen it rise to become the market leader in the supply of windows and conservatories.

The transaction will see the management team of Synseal, led by chief executive officer, David Leng, take a significant equity stake in the business. A debt package from Yorkshire Bank was put in place and contributed to by H.I.G in order to allow the accelerated completion of the acquisition. H.I.G’s total funding into the deal totalled £30.5m. Former owner of Synseal, Gary Dutton MBE, has retained an interest in the home improvements industry via the launch of Doorstop International Limited (“Doorstop”), a composite door manufacturer.

The deal represents Clearwater International’s second industrial products transaction of 2010 following the recent sale of specialist builders’ merchant UGS to BSS.

“This deal is the culmination of months of careful negotiation, and we’re delighted to have helped the vendor realise excellent value in the market-leading business he has successfully grown over a 29-year period. Gary Dutton is a true entrepreneur, and an example to others like him with the same passion for business.”

Phil Burns, Partner, Clearwater International