Electra Private Equity has sold its stake in luxury flooring manufacturer Amtico Group to Mannington Mills, generating £35.5 million in proceeds and marking a significant return on investment.

Target Information

Electra Private Equity PLC has successfully divested its stake in Amtico Group, a leading manufacturer of luxury flooring, to US-based Mannington Mills, Inc. This transaction is set to generate total proceeds of £35.5 million for Electra, with an initial £24 million already received, and the remaining balance expected by March 31, 2012. This sale marks a significant uplift of 36p in diluted net asset value (NAV) per share compared to Amtico's valuation as of September 30, 2011.

Electra's relationship with Amtico began in 1995 when it invested £17 million in the management buyout from Courtaulds. Over the years, Amtico has seen consistent growth under the leadership of CEO Jonathan Duck, who was appointed by Electra in 2003 after the retirement of his predecessor. In 2006, following the company’s transition to AAC Capital UK, Electra opted to reinvest part of its sale proceeds, acquiring a minority stake and providing mezzanine financing.

Industry Overview

The luxury flooring market is characterized by a growing demand for high-quality, aesthetically appealing products that cater to both residential and commercial sectors. In