Inflexion agrees to sell investment in Marley Group for £535m
Inflexion Private Equity is pleased to announce that it has agreed to sell its investment in Marley Group (“Marley”), the leading UK manufacturer of pitched roof systems to the construction market, to FTSE250 listed Marshalls plc.
The sale of Marley, will generate a return of 3.5x and an IRR of 58% for Inflexion investors. The announcement follows a record period of realisations by Inflexion over the last 12 months which includes the successful exits of Alcumus, Halo, Huws Gray, Medivet and Reed & Mackay.
Inflexion backed the carve-out of Marley in August 2019 from Etex, a Belgium based building materials firm, attracted by the first-class management team, historical financial performance and market leading position. During Inflexion’s stewardship, Marley was established as a standalone business, with Inflexion’s Digital team driving the transition to a standalone IT system. Significant investment was also made into new product development, including the introduction of a new tile line, and Inflexion’s Commercial team worked with management to optimise Marley’s pricing strategy. In partnership with the management team this helped Marley’s underlying EBITDA to almost double since Inflexion’s investment.
The firm’s ESG credentials were expanded, with carbon emissions intensity down 33% between 2019 and 2021. 100% of production waste is now recycled and all manufacturing energy sourced from renewable sources. Inflexion supported the development of environmentally friendly products including the entry into solar panels with the acquisition of roof-integrated solar panel supplier Viridian Solar Ltd in 2021.
The transaction is subject to the approval of Marshalls’shareholders.
Marley is a well-managed business which provides a first-class product. The quality of its offering is highlighted by its resilience, with profits consistently growing since our investment despite the headwinds of Brexit and the pandemic. We would like to thank the whole team for their hard work and commitment. We are confident that the business will continue to go from strength to strength.
Marley is a robust business with a strong future ahead of it. As part of the Marshalls family, I believe we will be extremely well-positioned to continue our growth strategy to the benefit of our colleagues, customers and partners. Inflexion have been a tremendous partner and we’ve achieved so much together in under three years, helping us establish as a standalone business and strengthen our product offering. We are incredibly grateful for their support.