Graphite Capital, a UK mid-market private equity firm, has completed the GBP130m management buy-out of U-POL, a provider of automotive refinish products, from private equity investor AAC Capital Partners.
This is the second time that Graphite has invested in U-POL after backing a management buy-out in 2002, growing the business and selling it to AAC three years later.
Graphite Capital partner John O’Neill says: “We are delighted to have the opportunity to invest in U-POL again. This is a first class business which manufactures and sells, under its own brands, high quality, innovative products and has substantial growth potential in a global market worth some GBP2.5bn.”
Graphite Capital has acquired a majority stake in the business. U-POL chief executive Phil May, who joined the business in 2006, is leading the senior management team, all of whom are reinvesting a substantial proportion of their proceeds. RBS, HSBC, Clydesdale Bank and Bank of Ireland have provided debt facilities.
From its manufacturing facility in Northamptonshire, U-POL supplies professional vehicle bodyshops in over 110 countries with a broad range of refinish products used in accident repairs. These include body fillers, coatings (primers and clear coats), aerosols, adhesives and polishes.
May adds: “Graphite’s track record, operating style and familiarity with our business and the automotive after-market made them our first choice. They share our strategic vision of increasing our penetration of international markets to achieve our ambitious growth targets.”
