Endless LLP ("Endless"), the UK based buyout and turnaround fund, announced that it has acquired IBP Limited and Europower Limited from Advanced Fluid Connections plc ("AFC"), the AIM listed fluid connections and intellectual property group. Via a new holding company, Endless has put in place a financing package of up to £12.5 million which secures the future of the businesses across the UK, Europe and North America, including the jobs of the companies' 1,230 employees. IBP and Europower had a combined turnover of £105 million in the year to 31 December 2005.
The refinancing includes the assumption of £40 million of the companies' debt, comprising bank borrowings and trade creditors, and was enacted via an administrative receivership of AFC plc. In addition, Endless has put in place an undertaking to return 10% of the equity value in the new company to AFC plc's creditors and shareholders in the event of a successful turnaround. The deal also ensures that the pension schemes within the Group are preserved.
Endless will be appointing a new Group Executive Chairman to complete the final stages of the Group's on-going restructuring, and will make an announcement on this as soon as possible.
IBP Limited, headquartered in Tipton in the West Midlands, is a market leading manufacturer and distributor of copper tubing and plumbing fittings to the retail and construction sectors across Europe. IBP, which has operations in France, Spain, Germany, Italy and Poland, has an annual turnover of £80million and employs 850 people. Europower Limited, which is headquartered in Leeds, manufactures and distributes hydraulic tubing and fittings to the automotive and engineering sectors across Europe and the USA. As well as the UK, Europower has operations in the Czech Republic, South Africa, the USA and France. The company employs 380 people and has an annual turnover of £25million.
Garry Wilson, Partner at Endless LLP, said: "Both IBP and Europower have very good business fundamentals with market leading brands and a strong reputation across Europe and North America. This refinancing, along with fresh management, greatly strengthens their position and will enable them to complete the restructuring of their operations. We look forward to working with employees and management to ensure the future prosperity of the businesses.
"We believe that the funding package we have rapidly put in place is in the best interests of both the businesses and its employees and, at the same time, gives creditors, and possibly shareholders, of AFC an opportunity to benefit from the returns generated by a successful turnaround."
Further information:
Capital MS&L
Richard Campbell
+44 (0) 2073 075330
+44 (0) 7775 784933
Endless LLP
Garry Wilson
+44 (0) 7785 225147
garry.wilson@endlessllp.com
Notes to editors:
Endless LLP
Endless provides investment and financial advice to support buyout, turnaround and re-financing situations with equity and debt injections. Based in Leeds, the firm prides itself on its market-leading speed combined with ultra-efficient service. Endless makes its own investment decisions, without any need for approval by a credit committee. Supported by private investment, Endless has raised an initial fund of £100 million to invest.
www.endlessllp.com
Capital MS&L
www.ibpgroup.com
Europower Limited
www.europower-hyds.com
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