Praetura Commercial Finance delivers MBO and growth finance deal for leading windows group



Client: Pearl Window Systems
Service: Confidential Invoice Discounting and Cash Flow Term Loan
Outcome: Management Buy Out

Pearl Window Systems (“Pearl”) is one of the UK’s leading fabricators and distributors of bespoke, design-led UPVc windows, doors and conservatory roof systems. The Group comprises three separate trading entities: Pearl Window Systems Limited, Pearl Window Systems (UK) Limited and Pearl Glazing Systems Limited. In order to meet the needs of installers throughout the UK, Pearl operates from a 70,000 square foot fabrication facility in Westhoughton near Bolton. This plant, combined with the group’s existing infrastructure and use of progressive fabrication techniques, allows Pearl to deliver circa 4,500 frames per week.

The Challenge

Pearl Window Systems was founded by its existing owners, Jeff and Judith Walsh in 1998. Jeff, the current Managing Director, saw an opportunity to effect a Management Buy Out (MBO) and step back from day-to-day operations, while continuing his involvement in the role of Chairman. The current management team have demonstrated their ability to grow the business throughout the pandemic and they are now ready to take the business to the next level with a clearly defined strategy.

The Solution

Praetura Commercial Finance structured and delivered a funding package to support the MBO, comprising a confidential invoice discounting facility, supplemented by a cash flow loan, maximising the availability of working capital headroom.

Jeff Walsh, Chairman at Pearl Window Systems, commented: “The MBO had been on my mind for some time. I broached the subject with the management team in late 2020 and they were delighted to step up to the challenge of running the business. We were introduced to Praetura Commercial Finance through a corporate finance adviser as part of a competitive process. We met with their team on a video call and we found them to be like-minded and refreshingly down to earth. We had a positive conversation and they guided us through the funding process. It was an enjoyable experience and the transaction was delivered smoothly in around 6 weeks. While the due diligence process was thorough, it was far from onerous and we gained some added value when we got into the nitty gritty in terms of digging deeper into the margins for certain products and colours that we will certainly carry forward into our KPIs going forward.”

The Transformation

He continued: “We have known our current management team since they were just 17 and they have shown tremendous dedication to the business. The opportunity for further growth is exciting and I am delighted at the support that Praetura Commercial Finance has given our team. With customer demand for home improvements soaring during the pandemic, the trajectory for the business looks very strong indeed.”

Stuart Bates, Co-Founder at Praetura Commercial Finance, said: “Pearl is a very well-managed business with a knowledgeable and highly experienced management team. Following the successful completion of the Management Buy Out, their team has a clear strategy and strong commitment to accelerate the growth of the business. We were delighted to complete the MBO, taking care to structure the level of finance that will enable the business to thrive and we look forward to supporting Jeff and the management team further in realising their ambitions.”