UK private equity house Maven Capital Partners has realised its investment in plastic extrusion manufacturer Nenplas, generating a return of more than 5x for investors.
The exit from Ashbourne-based Nenplas follows a sale of a controlling interest to German company Döllken-Weimar, part of the German quoted group Surteco, in a transaction that also included the sale of the entire share capital of Nenplas Property.
The Maven VCTs first invested in 2006 to support the management buyout of Homelux Nenplas. That business experienced rapid growth during the period of Maven's involvement, including the completion of a complementary acquisition and an increase in turnover from GBP12 million in the year to May 2007 to GBP17.5 million in the year to May 2012.
In March 2013 a partial realisation took place following a demerger process, where the Homelux DIY products division was sold to US quoted firm QEP, and Maven led a secondary buyout of the Nenplas plastic trade extrusion division, funded by the Maven VCTs and the retained management team.
The secondary buyout allowed Nenplas to focus on its core competency in the development, design and manufacture of extruded plastic products and develop new markets for its products.
Maven subsequently provided additional funding to enable Nenplas to make two acquisitions in support of its growth strategy. The first acquisition in 2013 was Polyplas Extrusions, which designs and manufactures extruded products in complementary markets. In the following year Nenplas acquired Delta Plastics, a manufacturer of co extruded plastic and rubber products. Those acquisitions allowed the management team to increase profitability by implementing leaner working practices, increasing efficiency and reducing raw material costs.
The sale to Döllken-Weimar provides an opportunity for Nenplas to benefit from new advanced manufacturing and product development technologies, and to gain access to new domestic and overseas markets.
Maven client funds that participated in the 2006 buyout of Homelux Nenplas have now realised over 5x return and an IRR of 30 per cent on the original investment, taking into account the return on exit from the demerger of the Homelux division.
Mike Collis, head of portfolio at Maven, says: "Led by a dynamic and talented management team, Nenplas has grown both organically and through acquisition to establish itself as a market leading business during the time of our investment. A focus on manufacturing excellence and the design and development of innovative solutions has enabled Nenplas to expand into new markets. We have enjoyed working with the joint managing directors Rob Butcher and Gary Horrobin and the rest of the Nenplas team on what has proved to be an excellent investment for Maven’s funds and investors.
Rob Butcher, joint managing director of Nenplas, adds: "The Maven team has been a valuable and constructive investment partner in helping our business grow, providing insightful advice and strategic support on acquisitions and developments into new markets. Maven has worked closely with our team since their original investment in 2006, supporting us through a demerger from Homelux and in completing acquisitions as we’ve grown the business.”