Dawn Gibbins, the inspirational head of the Flowcrete Group, has sold her business in a multi-million pound deal with the American manufacturer RPM International.
Gibbins’ set up the Cheshire-based commercial and industrial flooring business in 1982, with her late father Peter, and has turned it into a major multi-national company.
The business has 30 offices worldwide, 12 manufacturing plants, and 350 employees with 90 in the UK. Last year sales were over £44m in 2007 - an increase of 24% compared to 2006.
Gibbins’ success earned her an MBE in 1994, as well as the Veuve Clicquot Business Woman of the Year title in 2003. She was also made a ‘Pioneer to the Life of our Nation’ by Her Majesty the Queen in 2004.
The deal was struck during the evening of April 5, mere hours ahead of the deadline for the abolition of capital gains tax taper relief. Gibbins told Growing Business that this was a conditional of the sale but that she has remained resolute about the sale price, which has not been disclosed, throughout the negotiations.
She also says she is convinced her investor, which is listed on the New York Stock Exchange, is the right company to develop her business and brand and to continue its expansion.
“RPM won’t interfere and will allow the management team to get on with running the business. So my baby, this brand that I have created over the last 25 years will both remain and grow,” she said.
“For several months, we have been looking at ways to raise funds for the group, which would give it the financial muscle to make further acquisitions.”
Financial muscle is one thing her buyer certainly has. Last year RPM’s total sales were $3.3bn. However, 37% of its business was in North America and the Flowcrete acquisition is seen as a key way to expand its global reach.
Gibbins has been looking for an exit since last year and after considering a management buy-out began talks with the US company in the summer.
She now plans to move into social enterprise and is planning a business that will promote the concepts of Feng Shui and healthy environments across the UK.
Flowcrete will continue to be led by the current management team, with Mark Greaves continuing as group managing director. Gibbins will work as its brand and strategy advisor.
Greaves said: “I will be staying with the business together with the existing management team, with a brief to further aggressively expand the business to become the world’s leading specialist flooring company.”
Brabners Chaffe Street acted as legal advisers for the deal and Ernst and Young have handled the tax aspects.
© Crimson Business Ltd. 2008
