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Auto Windscreens is a brand well known to UK drivers and provides automotive glass repair and replacement services throughout the UK and Eire. In addition to cars, the business extends to replacing glass in plant and commercial vehicles and also provides a nationwide service of replacing stolen audio units. Established in 1971, Auto Windscreens is one of only two service providers in the UK with complete national coverage, employing 1,500 people and running over 700 mobile units.

The business depends on tight co-ordination of services across the country. Auto Windscreens needs to ensure it has access to approximately 9,000 different product lines 24 hours a day, 365 days a year, to meet the high quality of service required by its customers. Its central distribution warehouse is based in Birmingham and delivers stock daily to its 151 depots.

HSBC Private Equity successfully won control of the business when it was put up for sale by Heywood Williams Group plc. We led and arranged the financing to complete the transaction which included a £10 million (€16 million) mezzanine facility underwritten by HSBC Investment Bank plc.

HSBC Private Equity was attracted to the business for a number of reasons. It enjoys an unusually strong position in its market and the requirement for a comprehensive national network of depots, supported by quality stock management procedures, represents a significant barrier to market entry. The business is also more resilient than most in times of recession – the number of cars on UK roads does not fluctuate significantly during a downturn. In addition, the business boasts a very diverse customer base, including all of the UK’s major motor insurers and many of the biggest fleet users.

Having won through the auction process, HSBC Private Equity recognised the abilities of the incumbent management team who had worked together for over ten years and had delivered a track record of uninterrupted growth. As a result, we were delighted to invite the incumbent team to subscribe for equity in the business and work with them to take the company forward. The business was successfully sold in March 2001 to Lex Service for £112 million (€180 million)