LS was eventually carved out of Whitecroft and, in September 1999, Graphite backed the management team in a buy-out. The company had been formed from the acquisition of Shapland by Leaderflush in February 1998 and had three factories. It enjoyed strong relationships with large construction companies and contractors.
Whitecroft was a forced seller and we were able to complete the transaction quickly, while accommodating the vendor's main sale conditions. The management team of six directors was highly experienced in the industry and proved instrumental in negotiating an attractive transaction. LS Group’s market was set to benefit from the Government’s strong promotion of PFI and increased public-sector spending.
Key Business Achievements
Realised substantial synergy benefits from the merger
Improved gross margin considerably by focusing on purchasing and production efficiencies
Expanded its order book significantly through strategic partnerships with large contractors
Grew operating profit from £1.6 million to £5.6 million
Return on Graphite's Investment
In 2005 LS Group was sold for £47 million to SIG plc, generating a multiple of 6.1 times cost.