Tile, mosaic and stone products supplier TileCo has been backed by Alcuin Capital Partners so that its management can lead a buy-out of the business.

The company currently trades under two brands, Domus and Surface, and provides products used in commercial, office, infrastructure and residential applications.

By selling its stake in TileCo, private equity firm Graphite has now closed two exits in 2012. Its first came in October when it disposed of its interest in technical recruitment group NES Global Talent in a deal worth £234 million.

The current deal sees funding from the management team and debt provided by Centric Commercial Finance.

TileCo CEO Jon Newey says that Alcuin has already demonstrated an ‘enthusiastic and supportive approach’, with the firm representing an ‘ideal partner’ for the business.

‘This deal represents an outstanding opportunity for our business following a long and successful relationship with Graphite,’ Newey adds.

Graphite first became involved with TileCo when it backed a Newey led buy-out in 2001. The firm bought a 51 per cent stake in the company through an £11 million investment.

Speaking to GrowthBusiness, Jenny Michelman, partner at Graphite Capital, comments, ‘The general economic climate is challenging but nevertheless high quality, well managed businesses such as TileCo are able to deliver growth and therefore make a successful exit possible. 

‘Buyers are selective about the which sectors they want to invest in, so successful processes rely on seeking out the right group of prospective investors.’