Duke Capital invests another £3m in United Glass Group

3rd Sep 2024 12:03

(Sharecast News) - Duke Capital announced a follow-on investment of £3m in its existing capital partner United Glass Group (UGG) on Tuesday.

The AIM-traded firm said the investment would enable UGG to complete its acquisition of Premier Double Glazed Units, a company known for its automated manufacturing capabilities in insulated glass units, including triple-glazed products.

It said the new investment brought its total commitment to UGG to £15m.

The terms of the investment were consistent with Duke's typical financing model, which included a 6% annual revenue adjustment factor for payments due.

Duke said the transaction would be UGG's first acquisition since it increased its equity stake in the company to 73.8% earlier in 2024.

UGG, a group of architectural glass processing companies, had been a significant player in the UK market since the early 1980s, operating through its subsidiaries Brownhills Glass Company, Tufwell Glass, and London Architectural Glass.

The acquisition of Premier Double Glazed Units was expected to enhance UGG's market position by expanding its manufacturing capabilities and product offerings.

"This latest funding increases our total investment in a partner which has consistently delivered since we first commenced our partnership in 2018," said chief executive officer Neil Johnson.

"It is pleasing to see UGG successfully executing its buy-and-build strategy, expanding its presence as a national leader in the glass processing market.

"UGG's acquisition and strategic progress further validates our decision to increase our holding in UGG earlier in the year and as a longstanding partner, we are fully committed to providing the capital and support needed to realise UGG's vision and drive their continued success."

At 1133 BST, shares in Duke Capital were up 3.12% at 33p.

Reporting by Josh White for Sharecast.com.