The UK's leading expanded polystyrene manufacturer
Mobeus Equity Partners led the MBO of Jablite Holdings, the UK’s largest EPS manufacturer, in April 2015.
Jablite is the UK’s largest producer of expanded polystyrene (EPS) insulation products. The company generates revenues in excess of £40 million and employs around 200 people across five locations in the UK.
Jablite was a subsidiary of a larger European EPS maker which was sold piecemeal by its private equity owners.
Mobeus provided a combined debt and equity investment of £5 million in addition to arranging a £16.5 million sale and leaseback of the company’s property portfolio.
This was a complex transaction that included separation of the UK operations from that of its European parent and the carve-out of two defined benefit pension schemes.
The UK construction market is now recovering rapidly from a low point during the recession. Jablite is well invested and cash-generative, so the investment has already been significantly de-risked with £3.5 million of the £5 million investment being repaid to the VCTs within five months of completing the deal. The focus is now on seeking fresh ways to engineer the product to reduce manufacturing costs.
Mobeus Partner Richard Babington has joined the Board.
- Business Services
- Management Buyout
- April 2015
- £5 million
- Richard Babington