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NBGI Private Equity realises 10.7 times return on Superglass IPO exit12/07/2007. Source: AltAssets. 
 UK buy-out firm NBGI Private Equity has sold its 50.9 per cent stake in Superglass as part of the company's IPO on the London Stock Exchange. On admission, the IPO valued Superglass at an enterprise value of approximately £135m. Through the placing of its equity holding, NBGI achieved a 10.7 times return on its original investment and an IRR of 244 per cent per annum, the firm said.
Superglass is a UK manufacturer of glass wool insulation. The company's products are principally used to insulate residential buildings. NBGI led a £40m buy-out of the business in August 2005.
Through its admission to the Official List of the London Stock Exchange, Superglass has placed £72.8m of existing shares with institutional and other investors on behalf of selling shareholders, NBGI's Fund and Investec Growth and Acquisition Finance.
This is the sixth exit from NBGI's first fund. Investec worked with NBGI throughout the investment, providing mezzanine finance for the MBO, and a preferred equity strip post-transaction.
NBGI director Richard Morley said, 'The buy-out, which we led, gave the business independence for the first time. Now, just two years later, Superglass is a publicly listed company. During the intervening period, investment in the business has resulted in considerable growth in sales, production capacity, profit margins and employee numbers.'
NBGI typically provides equity funding of £5-50m, principally for buy-outs. The firm is currently raising its second fund.
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