Glass's Guide
An iconic name in the automotive industry, Glass’s Guide nevertheless was a business that needed the right backing to go in a new direction. Duke Street invested in the company just as it was developing a new software-based product for carrying out electronic insurance assessments of cars damaged in accidents. Here was a deal with a clear Buy and Build strategy, that we transform from a loss making company into a profitable business.
Supporting companies in transition
When Duke Street acquired Glass’s Guide – one of the auto industry’s most important sources of pricing and technical information – for £32.5 million in September 1995, it was a company in transition and eager to grow.
Relying largely on printed media to serve its customers, the company was just beginning to develop a new software-based product, offering a collision repair estimating system, called Glassmatix. It was an electronic form of loss adjusting which would come to replace the need for costly visual inspections.
Backing the management
We backed the incumbent management team, led by the former Managing Director of the Financial Times Information Services’ online division, Robin Oliphant.
The deal appealed to us because here was a management team with a clear Buy and Build strategy and because this was a company that could clearly realise greater value by using new technologies.
Speed was of the essence as we negotiated the initial investment. We came to the sale process late and had to carry out all due diligence and legal documentation in just seven weeks. We achieved this without deviating from the agreed price.
Rapid growth
With our support, Glassmatix grew from a relational database to become the foundation for a whole range of new products covering all aspects of auto management covering the car’s entire life. We also supported the company’s growth strategy, in particular backing subsequent acquisitions of Glass’s Australia and Bodymaster.
We exited the business in August 1998, realising a return more than seven times our original investment. By that time Glassmatix had established itself as the UK’s leading supplier of collision repair estimating systems.