Clearwater International advises on €128m sale of HL Plastics

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Clearwater Advisor

HL Plastics (HLP) has been acquired by Quanex Building Products Corporation (NYSE: NX). Clearwater International advised HLP’s 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.

Clearwater International advised HLP on the deal. The team was led by partners Jon Hustler and Rob Britton.

“Clearwater International did an excellent job in supporting us through the sale of the business. We were impressed by the team’s knowledge of the sector, international reach and thoughtful approach over potential suitors for the business. The team’s expertise, experience and great care in preparing well in advance enabled an accelerated sales process between offer and final completion. In addition, the team’s dedication to getting the deal done and willingness to provide additional assistance allowed management to continue running the business with minimal disruption to the day-to-day operations. I would thoroughly recommend the team and Clearwater International to anyone considering a similar process for their own business.”

Roger Hartshorn, Group Managing Director at HL Plastics

“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.”

Jon Hustler, head of Industrials at Clearwater International