Inflexion Private has agreed to sell its investment in Marley Group (Marley), a UK manufacturer of pitched roof systems to the construction market, to FTSE250 listed Marshalls plc for GBP533 million.
The sale of Marley, will generate a return of 3.5x and an IRR of 58 per cent for Inflexion investors. The announcement follows a record period of divestments by Inflexion over the last 12 months which includes the successful sales of Alcumus, Halo, Huws Gray, Medivet, Reed & Mackay, and Succession.
Inflexion backed the carve-out of Marley in August 2019 from Etex, a Belgium based building materials firm, attracted by the first-class management team, historical financial performance and market leading position. During Inflexion’s stewardship, Marley was established as a standalone business, with Inflexion’s Digital team driving the transition to a standalone IT system. Significant investment was also made into new product development, including the introduction of a new tile line, and Inflexion’s Commercial team worked with management to optimise Marley’s pricing strategy. In partnership with the management team this helped Marley’s underlying EBITDA to almost double since Inflexion’s investment.
The transaction is subject to the approval of Marshalls’ shareholders.
