Part of the statement released read:
The management team of Synseal announced today that it had purchased the share capital of Synseal Extrusions Ltd and Allerford Holdings Ltd from Gary Dutton MBE for an undisclosed sum.
The successful culmination of several months of negotiation was concluded with the partnership of H.I.G. Capital Ltd a global private equity business.
David Leng, Chief Executive commented:
“We are very excited to be driving Synseal through its next period of growth. We can see some great opportunities for ourselves and our customers in a fragmented window and conservatory market. We have a very strong manufacturing and logistics base that delivers first class product on time, every time, and we aim to make that really count for our customers.
Synseal has historically grown by offering the right product at the right price and we will be developing those values in the future.
Our customers can expect to see an increase in pace of product development and more help with marketing and new markets.”
“We are delighted to be supporting David and his team in working to consolidate the window and roof extrusion industry. Synseal is a great business and will do very well in a tough market place” said Paul Canning Managing Director of HIG.
When takeover’s occur, the immediate thought turns to jobs. As we have seen with the Kraft takeover of Cadbury, no guarantee was made to safeguard jobs, then a week later they announced a factory would close within two years, with the loss of hundreds of jobs. Will the new owners of Synseal make any sort of guarantees to keep jobs safe, or do they have a cost cutting plan in mind?
One thing that is certain, Gary Dutton will be a rather wealthy man now. What will he do with all his time and money?
MBO’s/mergers/takeovers don’t always turn out to be the best option. Lets hope Synseal stay on the right track and prosper in difficult times.