The private equity transaction report 2012 Quarter 2 The Overview 21 New Row, Covent Garden, London, WC2N 4LE. T: 0203 327 4029 E: [email protected] MARBLE HILL PARTNERS www.marblehillpartners.com Interim Management & Executive Search The private equity transaction report 2012 Quarter 2 Contents Introduction Introduction 2 Welcome to Marble Hill Partners’ second Transaction Report of 2012 which offers a snapshot of UK Private Equity activity and Q2 Transactions 2012 3 accompanying analysis for Q2 this year. In this summary you will find an alphabetical index of all private equity transactions Observations 8 recorded in the UK and a brief breakdown of the sectors and types of transactions completed. Transaction Volume 9 Marble Hill Partners (MHP) is a multi disciplinary Interim Management and Executive Search firm which specialises in working with Private Equity backed businesses. Transaction Focus 13 MHP most commonly work with investors and management teams in the first 18 months post MBO filling the gaps in the management team through our executive search services and introducing Appointments 15 Interim executives to deliver professionalisation and process improvement programs. Strategic change and turnarounds are also common triggers for our services. For the purpose of our market research and business development we have been collating data on the UK Private Equity market for the last four years. In January 2011 we published our first Transaction Report which has evolved this year to become The Overview , it will be released quarterly with a more in depth analysis at the end of each year. If you wish to see last year’s reports, please get in touch. The Overview T: 0203 327 4029 www.marblehillpartners.com 2 The private equity transaction report 2012 Quarter 2 Q2 Transactions 2012 The data has been collated from the Trade Press and Investor Press Releases and whilst we cannot guarantee that our research is 100% accurate (not all transactions are publicised and in many cases values are not disclosed) we are keen to share our research and observations with our industry. We have only made note of transaction sizes of £5million and above. Company Transaction type Exiting investor New investor Date Transaction size Industry Game Group Distressed Purchase OpCapita 01 April 2012 Undisclosed Retail Vodat International MBO Maven 02 April 2012 £5,000,000 IT/Telco Services Data Explorers Exit- Trade Sale Bowmark Markit 03 April 2012 Undisclosed Analytics Specialist Volumatic MBO NVM 03 April 2012 £6,000,000 Cash Handling for retailers LM Funerals SBO Sovereign Duke Street, Babson 10 April 2012 £37,500,000 Funerals Capital Capital Europe, Metric Capital Partners Loungers Growth Capital Piper Private Equity 10 April 2012 £16,000,000 Leisure Cranswick Exit- Trade Sale LDC Westland Horticulture 12 April 2012 £18,000,000 Retail Pet Product Jede UK MBO Broadlake Capital 12 April 2012 Undisclosed Retail Deloro Stellite Exit- Trade Sale Duke Street Kennametal Inc 13 April 2012 Undisclosed Metal Products Adelie Foods Exit- Trade Sale Duke Street India Hospitality Corp 16 April 2012 £350,000,000 Food Jaeger Group MBO Better Capital 16 April 2012 £19,500,000 Retail Seven Technologies MBO YFM 18 April 2012 £6,600,000 Electronics The College of Law MBO Montagu 19 April 2012 £200,000,000 College Bathrooms.com Growth Capital Augmentum Capital 23 April 2012 £7,500,000 Retail & Dawn Capital The Overview T: 0203 327 4029 www.marblehillpartners.com 3 The private equity transaction report 2012 Quarter 2 Q2 Transactions 2012 continued Company Transaction type Exiting investor New investor Date Transaction size Industry Solar Care Exit- Trade Sale Barclays Ventures Voyage Care 24 April 2012 Undisclosed Specialist & RBS Healthcare Olaer Group Exit- Trade Sale Gresham Parker Hannifin 24 April 2012 Undisclosed Manufacturing P2i Growth Capital Naxos Capital Partners 25 April 2012 £12,000,000 Chemicals Raleigh Exit- Trade Sale Perseus Capital Accell Group 26 April 2012 £61,800,000 Bicycles/Retail Rex Restaurants MBO Graphite Capital 26 April 2012 £21,000,000 Leisure Bifold Group SBO Caird Capital LDC 27 April 2012 £70,000,000 Oil&Gas Valves Four Seasons MBO Terra Firma 30 April 2012 £825,000,000 Care Homes Healthcare Just Eat Growth Capital Vitruvian Partners 30 April 2012 £40,000,000 Internet Purity Soft Drinks MBI Langholm Capital 01 May 2012 Undisclosed FMCG Cap MBO Montagu 02 May 2012 Undisclosed Publishing Weetabix Exit- Trade Sale Lion Capital Bright Food 03 May 2012 £1,200,000,000 FMCG M & C Energy Exit- Trade Sale Lyceum Schneider Electric 04 May 2012 Undisclosed Utilities Wear Inns MBO NVM & Business 08 May 2012 £10,000,000 Leisure Growth Fund Shoon Distressed Purchase GA Europe 09 May 2012 Undisclosed Retail Cream Holdings Exit- Trade Sale Ingenious Media Live Nation 10 May 2012 £13,930,000 Events Active Capital Entertainment Cinesite MBO Endless 11 May 2012 Undisclosed Media inov-8 MBO Isis 14 May 2012 £20,000,000 Shoes The Overview T: 0203 327 4029 www.marblehillpartners.com 4 The private equity transaction report 2012 Quarter 2 Q2 Transactions 2012 continued Company Transaction type Exiting investor New investor Date Transaction size Industry Bathstore MBO Endless 14 May 2012 £15,000,000 Retailer Leisure Pass Group MBO Primary Capital 14 May 2012 £35,000,000 Leisure SGX Sensortech MBO Baird Capital 16 May 2012 £15,000,000 Electronics Limited Cambrian Pet Food Growth Capital Swander Pace 16 May 2012 Undisclosed Speciality Retailer/FMCG Ocean Outdoor SBO Smedvig Capital LDC 17 May 2012 £35,000,000 Advertising Assisted Growth Capital CBPE 18 May 2012 Undisclosed Hospitals Reproduction & Gynaecology Centre BigHand SBO LDC Bridgepoint 21 May 2012 £49,000,000 Software Integrated MBO Gresham 22 May 2012 £23,000,000 Software Services Engineering Stores Associates Notonthe Growth Capital Fidelity Partners, 22 May 2012 £10,000,000 Online Shopping highstreet.com Greylock Partners, Website Index Ventures WFEL Exit- Trade Sale Dunedin KMW 23 May 2012 Undisclosed Defense Aspirations Care BIMBO August Equity 28 May 2012 Undisclosed Mental Health Group & Learning Difficulties CloserStill SBO NVM Phoenix Equity Partners 29 May 2012 £13,000,000 Events The Hoxton Hotel SBO Bridges Ventures Ennismore Capital 30 May 2012 £70,000,000 Leisure The Overview T: 0203 327 4029 www.marblehillpartners.com 5 The private equity transaction report 2012 Quarter 2 Q2 Transactions 2012 continued Company Transaction type Exiting investor New investor Date Transaction size Industry Iglu.com SBO Matrix Growth Capital Partners 31 May 2012 £19,000,000 Leisure Capula Exit- Trade Sale Dunedin Imtech 01 June 2012 Undisclosed Technology Windsor Exit- Trade Sale Hutton Collins Hyperion 01 June 2012 Undisclosed Insurance Insurance Group Symingtons SBO Bridgepoint Intermediate 06 June 2012 £125,000,000 FMCG Capital Group Marston Group SBO Gresham Inflexion 07 June 2012 Undisclosed Judicial Services Transys Projects Exit- Trade Sale Maven Vossloh Kiepe 07 June 2012 Undisclosed Transport/ Distribution Industrial Acoustics SBO MML Partners AEA Investors 07 June 2012 Undisclosed Noise Control Products Lifeways SBO August OMERS 11 June 2012 Undisclosed Supported Living Community Care Private Equity Private Equity Molinare Distressed Purchase Next Wave Partners 12 June 2012 Undisclosed Media Openet Growth Capital Balderton Capital, 13 June 2012 £13,500,000 Software Cross Atlantic and Kreos Capital Vertu MBO EQT 14 June 2012 £243,000,000 Electronics Technical Software MBO Encore Capital & 14 June 2012 Undisclosed Software Consultants Octopus Ventures Metronet SBO YFM & Acceleris LDC 14 June 2012 £11,000,000 Technology Services FoundOcean Growth Capital Ambienta 15 June 2012 Undisclosed Services Alliance Boots Partial Exit KKR Walgreen 19 June 2012 £4,000,000,000 Retail/FMCG The Overview T: 0203 327 4029 www.marblehillpartners.com 6 The private equity transaction report 2012 Quarter 2 Q2 Transactions 2012 continued Company Transaction type Exiting investor New investor Date Transaction size Industry WE7 Exit- Trade Sale Eden Ventures Tesco 21 June 2012 £10,800,000 Media Knights Solicitors MBO Hamilton Bradshaw 25 June 2012 Undisclosed Legal CTC Aviation MBO Inflexion 25 June 2012 Undisclosed Training Care Fertility Group MBO Bowmark 27 June 2012 £60,000,000 Fertility Clinics Entoria SBO Isis BlueGem 28 June 2012 Undisclosed Wine Distribution Capital Partners Horizon Care MBO NBGI 29 June 2012 Undisclosed Child Care Excelsior MBO GCP 29 June 2012 Undisclosed Packaging Technologies Hesley North MBO Bowmark 29 June 2012 £75,000,000 Disability Care *It would it be of huge benefit to the provenance of The Overview transaction report if we were privy to deal information and press releases directly from investors. Please forward our report on to your media relations teams so we can be included in press release distribution lists when transactions are announced. The Overview T: 0203 327 4029 www.marblehillpartners.com 7 The private equity transaction report 2012 Quarter 2 Observations: Sam Smith – Managing Director Our statistics show UK Private When these conditions will emerge is anybody’s guess and until then Equity bearing up well in UK Private Equity houses will continue to be frustrated by a scarcity of good quality assets and inflated valuations for those coming to market. what can only be described as a challenging market. Currently the sector is divided into three distinct categories of Private Equity House. Those who have raised funds in the last 2-3 years and Transaction volumes have have cash to deploy, those who are in the process of raising their next remained fairly static and fund (with varying degrees of success) and those who have failed cash deployed is actually and are investing on a deal by deal basis (perhaps the beginning of the end?). down. While the macro economic uncertainties make forecasting almost For many in fundraising mode, 2012 will be “a do or die year”. Notable impossible there remains a huge amount of dry successes so far have been Isis Equity Partners raising their fifth fund of £360 million and at the other end of scale BC Partners raising €6.5 powder left in the UK PE market.