The six strong management team led by executive chairman Roy Eady has acquired a 22 per cent. stake in the business that sees 3i exit completely, and provides an exit for majority shareholder Brian Kennedy, who has reinvested a substantial sum to acquire a significant shareholding in the new company.

Bank of Scotland Corporate Banking provided an integrated debt and equity package to support the management team, and will take a minority stake in the business.

The business has fared well under current management. During the last year under Caradon ownership (1998) Everest’s sales were £93.4m and operating profit was £1.6m. Sales to year-end October 2002 were £111m with operating profit of £10.2m.

Roy Eady commented "Our sales and margin growth over the last few years has been tremendous, in contrast to many of our competitors. We have been able to invest in a substantially increased sales-force, adding 200 people, and in a widened product portfolio. We are now in a position to harness the flair and motivation of an equity holding management team. Current orders are strong at £34m, and we are projecting just over £12m operating profit in this financial year, with a business plan to show growth in sales to £150m by 2006."

Everest is one of the UK's best known brands, a position rooted in television advertising of the 1980’s when Ted Moult brought the phrase 'Fit the best, fit Everest’ to the screens of millions.

The ads were created by ABM. Ironically Everest has not been advertised on television in any major way since 1986, but brand recognition is so deeply embedded that among the company’s prime target audience, recall remains at a staggering 98 per cent.

Currently Everest plays on this recall and uses response oriented direct marketing as its major promotional tool, with over 20m mailings going out a year.

Commenting on the deal, Frank Summers, Director of Integrated Finance at Bank of Scotland said “Everest is a strong business with a management team who, despite operating in a very competitive market, have significantly improved the business in the last few years.We look forward to working in partnership with the team in the future.”

Plans for the future are ambitious and follow an already rapid range extension including conservatories, intruder alarms, CCTV, garage doors, roofline products, and traditional timber sash windows as well as the original secondary glazing and their state-of-the-art UPVC replacement windows and doors.

There has also been a move into the commercial sector with clients like BAA and Havering Council, and the company has developed a competitive finance offering (Everest HomeAccount). A range of new products that will widen Everest’s involvement in the “Home Improvements” sector is under consideration such as fitted kitchens, loft conversions, fitted bedrooms and bathrooms.

Rickitt Mitchell & Partners advised the management team.