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On Tuesday, Duke Capital revealed a follow-on investment of £3 million in its partner, United Glass Group (UGG), marking a significant step in their ongoing collaboration. This latest funding injection is intended to support UGG’s acquisition of Premier Double Glazed Units, a company renowned for its advanced automated manufacturing processes for insulated glass units, including triple-glazed products. With this new commitment, Duke Capital’s total investment in UGG has now reached £15 million.
The terms of this investment align with Duke Capital's standard financing approach, which features a 6% annual revenue adjustment factor for payments. This move represents UGG’s first acquisition following its increase in equity stake to 73.8% earlier this year. UGG has been a prominent player in the UK glass processing industry since the early 1980s, operating through well-known subsidiaries such as Brownhills Glass Company, Tufwell Glass, and London Architectural Glass.
The addition of Premier Double Glazed Units is anticipated to significantly strengthen UGG's market position by enhancing its manufacturing capabilities and broadening its product range. This acquisition aligns with UGG’s strategic goals and is expected to contribute to its continued growth and market leadership. Neil Johnson, CEO of Duke Capital, expressed satisfaction with the development, noting that this latest funding not only increases Duke’s total investment in UGG but also underscores the success of UGG’s buy-and-build strategy. Johnson emphasized that UGG’s ability to execute its expansion plans effectively validates Duke’s decision to increase its holding in the company earlier this year.
The support provided by Duke Capital highlights its confidence in UGG’s strategic vision and operational success. The positive sentiment surrounding this announcement is reflected in the market, with Duke Capital’s shares rising by 3.12% to 33p as of 1133 BST. This uptick in share price indicates a favorable reaction from investors to the news of the expanded partnership and UGG’s ongoing success in the glass processing sector.
Overall, this latest development reinforces the strong partnership between Duke Capital and UGG, showcasing their mutual commitment to growth and innovation in the glass processing industry. The acquisition of Premier Double Glazed Units is expected to further solidify UGG’s market position and drive continued success in the competitive landscape.
