NBGI Private Equity, the mid-market investment group that backs businesses operating in the ‘traditional’ economies of retail, manufacturing, engineering and the like, has supported the £40 million management buyout of Stirling-based insulation manufacturer Superglass.

The UK’s second largest producer of glass wool insulation products, Superglass, will continue to be headed by managing director John Smellie, who led the buyout from privately-held insulation specialist Encon.

With NBGI’s backing, and a raft of new European regulations relating to the use of insulation products set to be introduced, Smellie is confident he can deliver considerable growth. NBGI has raised an additional £7 million to help fund expansion and Smellie claims that ‘at a time when the volume of new homes in the UK is steadily increasing, we are very well placed to develop and grow the business.’

Richard Morley, director of NBGI is equally bullish. ‘[Superglass] is highly cash generative, operates in a high growth market driven by positive market dynamics and has high barriers to entry,’ he explains. ‘The company is typical of the “traditional economy” businesses” we target.’