Quanex acquires HL Plastics in all cash transaction valued at approximately $145m

Roger Hartshorn and Bill Griffiths have jointly announced the acquisition of Flamstead Holdings Ltd, including HL Plastics Ltd, Wegoma Machinery Sales Ltd and Vintage Windows Ltd, in a deal with Quanex Building Products Corporation.
Quanex, a North American industry-leading supplier of cutting edge energy-efficient window and door systems and components with $600+ million in sales listed on the New York Stock Exchange, only acquires strong business partners that have a deep commitment to customers, are eager for growth and are considered technological leaders in the fenestration and related industries.
Its latest acquisitions certainly fit these criteria, with HL Plastics’ innovative Liniar uPVC range setting industry standards in thermal efficiency and Wegoma’s Supercut machining centre helping to improve window fabricators’ productivity.

Hartshorn commented:

“I am excited about our future with Quanex as I believe the combination of our outstanding companies will help to drive us even further forward and accelerate growth secured by a strong, financially sound industrial organisation.

“By remaining financially involved and continuing as Group CEO for a minimum of five years, I am ensuring it will be ‘business as usual’ for staff and customers alike.

“My commitment has always been to launch new and exciting products for the benefit of our customers, and to generate employment opportunities to stimulate the economy – and with Quanex resources behind us, we will unlock the potential to achieve even greater success.”

Quanex has a track record of success in the UK and European markets, having acquired Edgetech in 2011 and helped to take the company to new heights.
Quanex Chairman, President and CEO Bill Griffiths was on site at Flamstead’s headquarters in Derbyshire to help announce the news to staff at the three companies and answer any questions. He remarked:

“The businesses Roger and his team have built are a great fit with the Quanex philosophy and we’re delighted we’ve been able to agree a deal that includes his continued involvement for the long term future. We plan to work with Roger and his team to take the Liniar and Wegoma ranges to the next level through innovation and collaboration.”

Tarpey Harris Ltd and Flamstead Investments Ltd, the remaining companies in the Flamstead Group owned by Hartshorn, will see no change, with Roger reaffirming his commitment to the business and retaining overall ownership.

Although the acquisition has surprised the trade it will be no great surprise that the company is valued so highly. HL Plastics Ltd designs and manufactures the Liniar range of uPVC extrusions at its state of the art factory in Denby, and has seen substantial growth in the UK manufacturing sector, in no small part due to the launch of the Liniar window profile in 2008.

Operating from a state of the art factory and mixing plant in the heart of Derbyshire, HLP celebrated its 40th birthday in 2014 and has won a multitude of awards including Derby Telegraph Company of the Year in 2014 as well as the Growing Business Award for mid-sized companies, sponsored by Lloyds Bank and supported by the CBI. The innovative Liniar range was also voted Systems Company of the Year in the 2014 National Fenestration Awards, and the brand is the main sponsor of the NFA Cool Wall.

Entrepreneur Roger Hartshorn commenced his career on the shop floor at HL Plastics and is now Managing Director. A well-known figure within the industry, Roger was voted number 3 in the Window Industries’ Top 30 Most Influential list in 2013, and also features in The Manufacturer 2014 Top 100 influential individuals in UK manufacturing alongside business heavyweights from household brands such as Dyson, MacLaren, JCB and Rolls-Royce.

The Flamstead Group of companies was included in the London Stock Exchange’s inaugural 2013 book “1000 Companies to Inspire Britain”, and again in the second edition published in 2015.

With over 400 jobs created in the Derbyshire area (500 across the Flamstead Group), the company continues to grow and add to the UK economy.

The deal also includes Wegoma Machinery Sales, the UK business which became part of the Flamstead Group of companies in 2014. With renewed resources behind the company, Wegoma provides a different approach to windows machinery by having machines on a much reduced lead time or even available from stock.
Supplying a full and comprehensive product range from hand tools up to and including fully CNC controlled production lines, the Wegoma team’s comprehensive industry experience has been gained over decades to address the various challenges of window manufacture.

Tarpey Harris Ltd is being retained by Hartshorn. The company was formed in 1969, designing and manufacturing high quality tooling and wax injection production at a modern, purpose-built site in Denby, Derbyshire. Its main business is split into two divisions.

The toolmaking facility specialises in precision engineering and the design and manufacture of high quality tooling covering a wide range of industries – of which the largest are aerospace, power generation, medical and plastics. Tarpey Harris’ wax injection facility produces and assembles wax patterns for companies including Rolls-Royce and AETC.