Duralay was the UK’s leading manufacturer of carpet underlays for commercial and residential use. It also supplied a range of carpet fitting tools and accessories. When the business was put up for sale in May 1996 by owners BBA Plc, Cinven supported a buyout by the incumbent management team, which had been successfully growing the business for several years prior to the MBO.
Duralay, which was able to reap good margins due to increasing operating efficiencies and the application of new technologies to product development, had good growth prospects. These derived from the continuing increase in the use of underlay products for domestic use at the expense of foam backed carpet. In addition the company had expectations of growth in the commercial contract market as well in export sales. Cinven’s analysis concluded that this strategy could be achieved within an acceptable time frame.
In May 2002, Duralay acquired its major UK competitor, Tredaire, part of the Tomkins group, after a lengthy but ultimately successful Competition Commission enquiry. At the same time Cinven took the opportunity to dispose of the combined businesses to the Rutland Trust, a financial buyer.
Multiple returned on investment: 1.6x