News
ECI Partners acquires Nuaire Limited for £38m
15 March 2004ECI Partners (ECI), a leading UK mid-market LBO specialist, has today acquired Nuaire Limited (Nuaire) for £38m. Nuaire is one of the UK's leading manufacturers of domestic, commercial and industrial fans with turnover of approximately £35m and facilities in South Wales and France.
ECI is backing the existing management team, which has a consistent track record of steady revenue and earnings growth. ECI will provide strategic and financial support together with additional funding in the event of further acquisitions, to grow the business from its existing sound commercial and financial base.
Nuaire is a strong, well-established brand with a reputation for quality, innovation and high levels of service. Among its products are the Ecosmart range of environmentally friendly fans, which contain sophisticated controls to limit energy usage and Sunwarm, an innovative product that combines solar, water and air heating with whole home ventilation.
Nuaire is differentiated by its sophisticated, multi-channel sales structure and is the only major fan manufacturer offering a direct channel to market rather than relying on distributors. Its market is growing at around 5% p.a., driven by increasing awareness of environmental issues in the home and workplace. The business has the capacity, with new product lines, to grow significantly over the medium term. In addition Nuaire is well positioned in the public sector market and expects to continue to benefit from the growth in PFI spending.
Nuaire has a strong and highly experienced management team led by David Willcox. ECI has introduced Raymond Edwards as Non-Executive Chairman. Mr Edwards has served on the boards of other ECI investments including a current appointment as Chairman of Shepley Windows, a leading UK manufacturer of uPVC windows and conservatories.
Cavendish Corporate Finance, the UK's leading independent firm of mid-market advisers specialising in sell side mandates only, acted for the vendors of the company.
Deloitte & Touche acted for ECI Partners.
ECI quotes:
''We are attracted to companies where growth is driven by environmental factors and Nuaire is a further investment in this sector, building on previous investments in environmental consultancy and waste management. In a growing market, Nuaire is a genuinely differentiated business through its direct sales capability, its brands and its sophisticated sales structures. These factors represent a significant source of competitive advantage that we believe can be built on to develop value.''
''Nuaire is the type of business we want to back. It is a leader in a growing market, has strength and depth in its management team and has the potential to be a platform for consolidation.''
''We are delighted to have won this deal following a competitive auction process against trade and private equity bidders.''
''ECI will bring our strategic, financial and operational expertise to the business and, working with management, look forward to creating value for investors. We have already introduced Raymond Edwards as an independent NEC to complement the management team.''
''This is an exciting investment for ECI. We believe the UK mid market offers exceptional opportunities for value creation and that together we can grow this business to provide excellent returns over time.''
Nuaire quotes (David Willcox, [MD])
''We talked to a number of private equity backers. ECI gave us comfort that they would not only provide financial support but would work actively with us to grow the business. We look forward to working with them.''
''With additional financial support from our new partners we hope to introduce new product lines, deliver more aggressive marketing and make acquisitions to build on the success we have already achieved.''
''Our employees have always been at the heart of this business and this will continue to be the case. We look forward to continuing to build the business and providing opportunities for our staff.''
''This has been a success story for Wales. With the backing of our new financial partners we look forward to growing the business further and continuing to contribute to the South Wales economy.''
''With the help of Cavendish Corporate Finance, we have found the perfect partner in ECI to aid our business's growth. We look forward to building on our existing success in the market through the introduction of new product lines, more aggressive marketing and via acquisitions.''