Roofing contractor goes up in the world with Key Capital Partners investment

The Leeds office of private equity firm, Key Capital Partners (“KCP”) has completed its second deal in just over a week, after investing £2.3 million in thriving North East based roofline contractor and supplier, JD Plastics and Rooflines Ltd (“JD Plastics”), valuing the business at in excess of £5 million.

The deal sees KCP acquire a majority stake in the Bishop Auckland-based business, which has developed a strong presence as both a sole and sub-contractor in the social housing sector in the North East since its foundation in 1994 by father and son team Graham and Jamie Dent.

Consisting of two distinct operations, JD Plastics installs roofline products in housing refurbishment projects, while its supply division provides Swish-branded roofline products directly to house builders. The company’s success to date has seen sales climb from c £1.5m in 2006 to a projected £5m in 2008, with KCP’s investment set to play a significant role in furthering company growth.

Following the deal, Jamie Dent will remain in place as managing director, while KCP introduces two senior executives, Jolyon Harrison, former executive chairman of NorthCountry Homes, as chairman, and David Bradley, former UK Finance Director at Wolseley, as finance director.

Jamie Dent said: “Our partnership with KCP puts us in an excellent position to take advantage of a buoyant refurbishment market. Not only will it provide the investment required for us to roll out the benefits of our products and services in the North East and beyond, but it also readies the company for significant growth in the future.”

Peter Armitage, partner at KCP in Leeds said: “JD Plastics is a company with a tremendous market position in the North East. Its management team has made great strides in capturing a share of a niche market, which has made it an excellent investment opportunity. We look forward to supporting the company as it replicates this success across the North of England.

The KCP team of Peter Armitage and Mark Buttler was provided with legal advice by a team led by Nick Watson and Jo Stephenson at Hammonds in Leeds. Financial due diligence was performed by Tait Walker in Newcastle, led by Michael Smith. Yorkshire Bank, led by John Bullock, provided debt funding for the transaction. Graham and Jamie Dent were advised by corporate finance advisers Neville Bearpark and Zara Lane at Newcastle accountants unw, and received legal advice from Anthony Walters & Co, along with accounting advice from Paul Anderson of Jackson & Anderson Chartered Accountants.