Graphite Capital, a UK mid-market private equity specialist, has acquired a majority stake in Performance Window Group with the aim of building a diversified timber building products bu
Graphite Capital, a UK mid-market private equity specialist, has acquired a majority stake in Performance Window Group with the aim of building a diversified timber building products business.
Graphite is backing a management team led by Roy Wakeman and Mark de Rozarieux.
Graphite previously backed Wakeman and de Rozarieux in the management buy-out of LS Group, the high performance door manufacturer. Graphite achieved a multiple of more than six times its investment when LS was sold to SIG in 2005.
Wakeman formed PWG in 2006 and soon after acquired Mumford & Wood, a manufacturer of high-quality timber windows. PWG achieved sales of GBP10.6m last year. Part of Graphite’s investment will fund the group’s acquisition of Oxford-based TimberWindows.com, a fast-growing internet-based distributor of timber windows.
The market for residential timber windows increased by 11.6 per cent in the four years to 2007, when it was worth in excess of GBP400m.
Analysts predict continuing growth for timber products driven by the popularity of period property restoration and ‘green’ issues such as reduced energy consumption, sustainability and the positive environmental impact of timber compared with other materials.
Graphite senior partner Markus Golser says: ‘The market for timber materials is growing as people have become more environmentally conscious. The PWG management team, whom we have known for many years, are ideally placed to exploit this. We are looking forward to supporting their ambitious growth plans.’
Wakeman adds: ‘Graphite’s financial backing and experience of funding and executing buy-and-build strategies will be a significant boost to our objective of creating a substantial and diversified branded timber building products group in the UK.’
