In February 2020, CBPE Capital (“CBPE”) announced the management buyout (MBO) of its portfolio company ABI Topco Limited (“ABI” or the “Company”), backed by Pricoa Private Capital (“Pricoa”). The transaction was funded through a combination of management equity and a structured financing package, which enabled CBPE to successfully exit its investment and achieve a money multiple of 3.0x.
The buyout, led by the management team, further supports the execution of the next phase of the Company’s development following strong historical performance.
Duff & Phelps’ M&A and Debt Advisory teams served as the exclusive advisor to CBPE and the management team in connection with the transaction. Barclays and CYBG provided a working capital facility which is pivotal to the ongoing operations of the business. DLA Piper served as legal advisor to CBPE.
Dafydd Evans, Managing Director at Duff & Phelps, said: "We are delighted to have advised the shareholders of ABI on this transaction which enables the management team, led by Richard Jones, to fulfil its ambitions for the business. This transaction highlights our strength as one of the leading M&A and debt advisors within the manufacturing sector and showcases our expertise in providing seamless support to deliver optimal solutions for our clients."
ABI is a leading manufacturer of caravan holiday homes and twin lodges. It is renowned for providing superior quality and design as well as best-in-class customer service and is one of the most highly regarded and established brands in the caravan holiday home industry. The Company manufactures its caravan holiday homes in Beverley, East Yorkshire where it employs over 500 people. ABI is the second-largest supplier into the UK market by volume and supplies all of the major holiday park groups, as well as smaller groups, independent parks and several dealerships in the UK market.
CBPE is a leading private equity firm with nine funds raised over 30 years. It is currently investing its latest fund, which closed in August 2016 at GBP 459 million. Investments are typically made in companies seeking growth or development capital, with an enterprise value of up to GBP 150 million.
Pricoa provides private debt and minority equity capital to public, private, and family-owned mid-market businesses across the UK and internationally. For more than 75 years, Pricoa has been partnering with a wide range of corporations, sponsors, and institutions to provide valuable insights, guidance, and customized capital solutions that enable them to achieve their growth and funding goals.