U-POL

Transaction Background

In September 2002 Graphite led the management buy-out of U-POL from family shareholders. U-POL is a manufacturer of body fillers, paint coatings and other products for the automotive aftermarket. It was established in the 1950s and has grown to be the leading automotive filler manufacturer in the UK selling to 74 countries worldwide.

Deal Attractions

We were attracted to the business by the strong growth achieved by a very experienced management team. The team expanded successfully away from U-POL’s UK filler product range into new products and markets. The business has a market leading position in the UK and growing market share in Continental Europe, Africa and America.

Achievements

sales increased from £23.2 million in 2002 to £28.8 million in 2004
operating profit increased from £4.8 million in 2002 to £7.2 million during the same period
the management team successfully developed and launched new products
focused cost control helped drive profitability
the business was strongly cash generative

Exit

U-POL was sold for £75 million to a management buy-out backed by ABN Amro Capital in January 2006
the sale generated a total return to Graphite of 3.2 times its investment and an internal rate of return of 55 per cent