Interfloor

An £84.1m management buy-in (MBI) of the Interfloor Group was completed in August 2005.

Interfloor is Europe’s largest manufacturer of underlay and accessories, with worldwide sales of over £140 million. With three UK sites and one in the US, the business supplies the leading branded products Tredaire, Duralay and Gripperrods.

Clearwater advised on the deal and brought new chairman Phil Reeder to the table. A newly formed company led by Reeder completed the acquisition, backed by private equity firm EAC and with senior debt provided by Kaupthing bank and mezzanine debt by Hutton Collins and Company.

Reeder subsequently assembled a new management team to deliver significant cost reduction, by improving the operational effectiveness of the UK activities and the disposal of the US-based subsidiary. Post-transaction this programme has progressed successfully.

Speaking of Clearwater's involvement in the deal, Reeder commented:

“The deal could not have happened without Mike Reeves of Clearwater. His standing in the Manchester financial community enabled the MBI idea to be given credence and subsequently to become the best option.”