Epwin Group Limited Announcement of Intention to Float on AIM

Epwin Group Limited has announced its intention to proceed with an initial public offering and to apply for admission of the issued and to be issued ordinary shares of the Company to trading on AIM (“Admission”). Zeus Capital Limited is acting as Nominated Adviser and Broker.

Epwin is a vertically integrated manufacturer of extrusions, mouldings and fabricated low maintenance building products, supplying the RMI, new build property and social housing sectors.

The Group has a strong market presence and is a profitable, cash generative and financially stable business with revenues in the year to 31 December 2013 of £264 million and Adjusted EBITDA of £21 million.

The Directors believe that admission to trading on AIM will provide an increased profile for the Group and its brands, a strengthened balance sheet, and the ability to use AIM quoted shares as currency for acquisitions. The company will also be completing a vendor placing.

The Placing and the Vendor Placing together will raise a total of £94 million. The expected net proceeds for the Group under the Placing will be £10 million and will be used to repay a proportion of the debt within the business, in combination with new debt facilities raised of £25 million. The reduced gearing within the Group, as well as the resulting reduced annual interest burden, will allow management to operate the business with greater flexibility and result in increased cash generation. This greater flexibility and cash generation may in due course allow management to pursue a range of strategic options, including (but not limited to); increased investment in the business, consideration of acquisition opportunities and increased shareholder returns by way of dividends.

Jon Bednall, Chief Executive Officer said: “Epwin was one of the first entrants into the PVC-U window market in the mid 1970s. Since then the Group has broadened its product offering significantly, both organically and through acquisition, and grown market share. Today we believe there is potential for further organic growth in all business areas as well as opportunities to drive further sector consolidation and operational efficiencies. We are delighted with the strong support shown by our new investors and look forward to working with them to build on these strengths and grow our business.

“I am also pleased that Peter Mottershead has agreed to join the Board as Chairman. Peter’s industry experience and leadership will be a great asset to Epwin as we enter the next phase of the company’s development as a public company. I am also pleased to welcome Andrew Eastgate to the Board. Andrew knows our business well and brings tremendous advisory experience. We look forward to working together as we continue to develop the Group.”