Specialists in processing a wide range of products for the Automotive industry

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In June 1995, Montagu led and structured the £11.1 million Management Buyout of Thermopol Limited, a manufacturer of silicone rubber hosing, from its founders.

The sale was the end of a process that had begun in 1990 when the original founders partially exited from the business and, at the same time management increased their equity participation in the business. In order to complete the process the management decided to arrange a buyout. Montagu won the mandate against a number of private equity competitors, thanks to our understanding of the automotive sector.

Thermopol was established in 1962 to exploit the potential of silicone rubber and other thermally stable polymers. With the advent of diesel engine turbocharging and intercooling technologies there was an opportunity to supply high temperature resistant hoses to truck manufacturers throughout Europe. As the penetration of turbocharging and intercooling in the truck market increased, so did Thermopol's market, such that it is now Europe's leading supplier of silicone hoses to the automotive sector, exporting some 90% of sales.

Thermopol had exported to North America since 1980 and in 1992 it established a US operation as a joint venture which gave it a US manufacturing base for its products - an important factor for supplying the North American truck market. Management were keen to own the US operation outright and their partner was willing to sell so that in addition to the buyout funding, financing was provided for the acquisition of Thermopol's joint venture in Thermopol Inc. The purchase took place eight days before the buyout was signed. The combined group, Thermopol International, came to employ some 188 people at its headquarters in Crawley, Sussex and Somersworth, in the USA.

Thermopol was sold to Contitech AG on 31 January 2006.

Deal details

Deal type: Management Buyout Investment Year: 1995 Country: United Kingdom Status: Realised Value: £11 million Industry Sector: Industrials