The Opportunity
H2 Equity Partners was approached during the summer of 2013 to evaluate an investment opportunity to acquire Eurocell from its Belgian listed parent company. The company had been designated “non-core” by its owner and was its only material UK subsidiary active in the building materials market.

At the time, Eurocell was one of the leading PVCu profile and roofline product manufacturing and distribution businesses in the UK generating sales of ca.£150 million per annum. It’s main manufacturing sites were based in Alfreton (Derbyshire – United Kingdom) and the company had a network of 120 branches throughout the UK. Profitability levels were decent, but the lack of focus from the parent company and the ongoing divestment process meant that management was restricted in its ability to aggressively grow and improve the business.

H2’s Investment and Approach
H2 acquired Eurocell in September 2013 and immediately started to develop an ambitious growth and profit improvement plan in conjunction with management. Eight key strategic initiatives were identified with the aim to double EBITDA over the next few years. Each strategic initiative was led by a Eurocell manager and a H2 team member. The quality improvement teams and renewed management focus resulted in a quick implementation of the plans; and virtually all strategic initiatives delivered results ahead of the planned timing and EBITDA impact. Within 18 months the business had managed to more than double its EBITDA and significantly grow its sales.

The Outcome
Eurocell PLC is now listed on the Main Market of the London Stock Exchange and has continued to deliver attractive returns for its stock market shareholders. H2 Equity Partners sold its last remaining shareholding in Eurocell in March 2017 and has generated strong returns on its investment while creating a strong, growing, and sustainably profitable business in its segment.

Terry Musson

The Amberon Group is a market leading traffic management provider to the utilities and Local Authority markets. Amberon was established in May 2002 with our first depot in Paignton, South West England. Our founding core principles remain at the heart of everything that we do and our continued desire to achieve our purpose; to provide the best service in the Traffic Management sector. This has been the foundation for our success and has cemented our position as the market leader in TM.

During the initial transaction we never felt under any pressure & instantly recognised we would become part of the family. H2 took the time to listen to our views & business strategy, it was obvious from the very beginning that they would be the perfect partner for us.

The guys at H2 have enabled us to continue the momentum & have provided the expertise & knowledge to help us continue on the journey to constantly improve our service offering.

Working with H2 during the last 2 years has given us additional support not just financially but the advice & expertise has helped analytically & strategically.

The ambition and the drive H2 have is extremely infectious & continues to assist the group to overachieve.

It’s enormously reassuring to know H2 will always be at the end of the phone to offer advice but heartening to know they have the trust in us to deliver.