DC Advisory brings you an update on UK mid-market activity for Q2 2018.

Key highlights from the period include:

  • Q2 2018 has seen a 26% increase in the total number of mid-market deals when compared to Q1 2018. There is significantly stronger appetite for transactions, with an increase of 32% in the total number of mid-market buy-out deals compared to Q2 2017
  • Despite the ongoing uncertainty in a post-Brexit environment, the number of transactions has remained on an elevated level so far
  • The findings highlight the correlation between the overall increased mid-market buyout activity and an extraordinary surge in trade exits (64% higher compared to Q2 2017), despite continuously high levels of dry powder and healthy competition among mid-market private equity firms
  • The volume of buyout deals in Q2 2018 is the highest observed per quarter since Q2 2014, which can be largely attributed to the significant rise in activity within the Service and TMT sectors, increasing by 118% and 113% compared to Q2 2017, respectively
  • Should activity within these sectors continue to rise at this rate, the total volume for 2018 would be 1.5 times and 1.7 times vs 2017, respectively
  • Deal volumes have fallen slightly for the Leisure, Retail & Consumer, Industrial Products & Services and Healthcare sectors compared to 2017. This ‘cooling-off’ versus H1 2017 can be interpreted as a rebasing to deal levels that we observed during the years prior

The below graphs illustrate recent mid-market buyout activity, buyout per sector and deals by source and exit:

Q2 total UK mid-market buyout activity

2015 – 2018 total UK mid-market buyout deals by sector

2015 – 2018 total UK mid-market deals by source and exit

Who’s been fundraising?

April

Volpi Capital held a final close of Volpi Capital Fund I, at €185m
Ardian held a final close of Ardian Growth II, at €230m
General Atlantic held a final close of their third closed-end investment fund, at $3.3bn

May

Inflexion Private Equity Partners held a final close of Inflexion Buyout Fund V, at £1.25bn
Inflexion Private Equity Partners held a final close of Inflexion Partnership Capital II, at £1bn

June

TowerBrook Capital Partners held a final close of TowerBrook Investors V, at $4.25b
Providence Equity Partners held a final close of Providence Strategic Growth III at $1.3bn

 

See our latest M&A and debt advisory transactions >

Recent transactions by sector

Healthcare
Industrial Products & Services
Leisure, Retail & Consumer
Services
TMT

Healthcare

Portman Healthcare

Core Equity Holdings acquired Portman Healthcare, the dental care provider, from Livingbridge, for an undisclosed consideration. Core Equity Holdings was advised by DC Advisory, see more >

Corin Group

Permira Advisers, acquired Corin Group, the developer, producer and distributor of reconstructive orthopaedic devices, for an undisclosed consideration

Linnaeus

Sovereign Capital Partners sold Linnaeus, the provider of veterinary care services, to Mars, for an undisclosed consideration

Industrial Products and Services

Airline Services

LDC sold Airline Services, the provider of de-icing and aircraft presentation services to the airline industry, to Menzies Aviation, for an undisclosed consideration

Alpine Fire Engineers

Core Capital Partners acquired Alpine Fire Engineers, the designer and project manager of fire suppression systems, for an undisclosed consideration

Cutwel

NorthEdge Capital acquired Cutwel, the supplier of engineering cutting tools and machine tool accessories, for an undisclosed consideration

Huws Gray

Inflexion Private Equity Partners acquired Huws Gray, the distributor of timber and other building materials, for an undisclosed consideration

Northern Aerospace

Better Capital sold Northern Aerospace, the manufacturer of aerospace parts, to Gardner Aerospace, for an undisclosed consideration

Precision Micro

LDC acquired Precision Micro, the designer and manufacturer of photo etching metal components, from Meggitt, for an undisclosed consideration

Stirling Dynamics

Endless sold Stirling Dynamics, the designer, developer and manufacturer of mechatronic systems for aerospace and defence, marine and energy sectors, to Assystem, for an undisclosed consideration

Thermotech Solutions

Foresight Group sold Thermotech Solutions, the designer and installer of fire sprinklers and air conditioning systems, to Atalian Global Services, for an undisclosed consideration

UK Power Reserve

Inflexion Private Equity Partners and Equistone Partners Europe sold UK Power Reserve, the developer of distributed energy and operator of a power plant, to SembCorp Industries, for a consideration of £216m

Vacgen

Agathos Management acquired Vacgen, the supplier of vacuum components and manipulation devices from Scienta Scientific, for an undisclosed consideration

Leisure, Retail & Consumer

Cotton Traders

CorpAcq acquired Cotton Traders, the sport and leisure wear retailer, for an undisclosed consideration

Homebase

Hilco Capital acquired Homebase, the home improvement and garden retailer, from Westfarmers, for an undisclosed consideration

Jollyes

Kester Capital acquired Jollyes, the retailer of pet food and pet accessories, for an undisclosed consideration

LoveHolidays

Livingbridge acquired LoveHolidays, the online travel agency, for an undisclosed consideration

Pizza Hut UK

Rutland Partners sold Pizza Hut UK, the operator of a chain of pizza restaurants, to the management team, for an undisclosed consideration

Rosa’s Thai Café

TriSpan acquired Rosa’s Thai Café, the Thai food chain, for an undisclosed consideration

Tailsco

Draper Esprit sold Tailsco, the operator of an online pet nutrition service that provides tailor-made diets for pets and working dogs, to Nestlé, for an undisclosed consideration

The Club Company

Epiris acquired The Club Company, the owner and operator of health and golf country clubs, from Lone Star Funds, for an undisclosed consideration

Travel Counsellors

Vitruvian Partners acquired Travel Counsellors, the travel company, from Equistone Partners Europe, for an undisclosed consideration

Services

Cadogan Tate

H2 Equity Partners acquired Cadogan Tate, the specialist storage and premium logistics company, for an undisclosed consideration

CLEAN Linen Services

MML Capital Partners sold CLEAN Linen Services, the provider of laundry and workwear services, to Alsco, for an undisclosed consideration

Cordium Consulting

Ares Management sold Cordium Consulting, the provider of regulatory compliance consulting services and software to the asset management and securities industries, to ACA Compliance Group, for an undisclosed

Coversure Insurance Services

Livingbridge acquired Coversure Insurance Services, the provider of insurance services, for an undisclosed consideration

Endeavour Insurance Services & SSL Insurance Group

J.C. Flowers & Co. acquired Endeavour Insurance Services, the insurance and reinsurance broker, and SSL Insurance Group, the marine insurance broker, for an undisclosed consideration

etc.Venues

Growth Capital Partners sold etc.Venues, the provider of meeting, training and event spaces, to Benchmark Hospitality and Gencom Group, for an undisclosed consideration

ICS Learn

Primary Capital Partners acquired ICS Learn, the provider of long distance learning services, from Par Equity and Ironbridge Capital, for an undisclosed consideration

Ipes

Silverfleet Capital Partners sold Ipes, the provider of fund administration and outsourcing services, to Apex Fund Services, for an undisclosed consideration

JLA

Cinven Partners acquired JLA, the supplier and servicer of commercial and industrial laundry solutions, from HgCapital, for an undisclosed consideration

Key Travel

Elysian Capital acquired Key Travel, the travel management company serving clients in the humanitarian, faith, and education sectors, from Livingbridge, for an undisclosed consideration

Kindertons

Sovereign Capital Partners sold Kindertons, the provider of outsourced accident management services for motor insurers and insurance brokers, to ExamWorks Group, for an undisclosed consideration

Lawyers On Demand

Bowmark Capital acquired Lawyers On Demand, the provider of alternative legal services, for an undisclosed consideration

LDF Operations

Cabot Square Capital sold LDF Operations, the non-bank business finance provider for small- and medium-size enterprises, to White Oak Global Advisors, for an undisclosed consideration

learndirect

LDC sold learndirect, the online training company, to Dimensions Training Solutions, for an undisclosed consideration

M Group Services

PAI Partners acquired M Group Services, the service provider to the regulated infrastructure markets, from First Reserve, for an undisclosed consideration

OCS Asset Solutions

LDC acquired OCS Asset Solutions, the provider of specialist retail and financial support services, from OCS Group, for an undisclosed consideration

Pension Insurance Corporation

J.C. Flowers & Co. sold Pension Insurance Corporation, the insurer and provider of pension insurance buyouts and buy-ins, to Abu Dhabi Investment Authority, for an undisclosed consideration

Phaidon International Group

Quilvest Private Equity acquired Phaidon International Group, the global staffing group, from Muzinich & Co. and HSBC Bank, for an undisclosed consideration

Prohire

NorthEdge Capital acquired Prohire, the provider of commercial fleet management solutions, for an undisclosed consideration

Right Choice Insurance Brokers

LDC acquired Right Choice Insurance Brokers, the motor insurance broker, for an undisclosed consideration

Supplier Assessment Services

Warburg Pincus acquired Supplier Assessment Services, the provider of procurement, health & safety accreditation and supply chain management services, from Capita, for a consideration of £160m

The Instant Group

Bowmark Capital acquired The Instant Group, the provider of flexible workspace solutions, from MML Capital Partners, for an undisclosed consideration

The Pallet Network

LDC sold The Pallet Network, the provider of palletised freight distribution services, to Eddie Stobart Logistics, for an undisclosed consideration

Westleigh Partnerships

Palatine Private Equity sold Westleigh Partnerships, the housebuilder and provider of affordable residential property, to Countryside Properties, for a consideration of £135m

TMT

IRIS Software Group

Intermediate Capital Group and HgCapital, through its HgSaturn Fund, acquired IRIS Software Group, the provider of business critical software and services to accountants and payroll professionals, from HgCapital, for a consideration of £1.3bn. DC Advisory advised HG Saturn Fund, see more >

Livingstone Technologies

The Carlyle Group acquired Livingstone Technologies, the provider of Software Asset Management Managed Services, for an undisclosed consideration. DC Advisory advised the Carlyle Group, see more >

Allocate Software

HgCapital sold Allocate Software, the provider of healthcare workforce management software, to Vista Equity Partners, for an undisclosed consideration

Datix

TA Associates acquired Datix, the developer and supplier of risk management and patient safety software to the healthcare sector, for an undisclosed consideration

UK Web Media & Energy Helpline

Inflexion Private Equity Partners acquired UK Web Media, the provider of marketing solutions and product comparison services, and Energy Helpline, the provider of gas and electricity price comparison services, for an undisclosed consideration

Financial Express

HgCapital acquired Financial Express, the provider of investment data, research and software to the financial services industry, for an undisclosed consideration

GCI Managed Services Group

Mayfair Equity Partners acquired GCI Managed Services Group, the provider of information and communication technology solutions to businesses, from Business Growth Fund, for an undisclosed consideration

Grapeshot

Albion Ventures, IQ Capital Partners and Draper Venture Network sold Grapeshot, the provider of keyword-contextual technology for the advertising industry, to Oracle Corporation, for an undisclosed consideration

IESA

Gresham sold IESA, the provider of outsourced procurement and storeroom solutions via a SAP-based and cloud-enabled technology platform, to Electrocomponents, for a consideration of £88m

Independent Transition Management

Inflexion Private Equity Partners acquired Independent Transition Management, the provider of specialist data services to the pensions and financial services markets, for an undisclosed consideration

IntelliFlo

HgCapital sold IntelliFlo, the provider of software solutions to the financial services sector, to Invesco, for an undisclosed consideration

MeetingZone

GMT Communications Partners sold MeetingZone, the provider of conferencing and collaboration services, to LoopUp Group, for an undisclosed consideration

NBS

LDC acquired NBS, the provider of technology, content and data services to professionals in the architectural, engineering and construction industries, from RIBA, for an undisclosed consideration

PEI Media

Bridgepoint Development Capital acquired PEI Media, the provider of financial information services, from LDC, for an undisclosed consideration

Validus-IVC

LDC sold Validus-IVC, the claims management and counter-fraud software specialist, to Verisk, for an undisclosed consideration

Watchfinder.co.uk

Beringea and Piton Capital sold Watchfinder.co.uk, the online retailer of pre-owned luxury watches, to Compagnie Financiere Richemont, for an undisclosed consideration

Wireless Logic

Montagu Private Equity acquired Wireless Logic, the smart connectivity platform provider, from CVC Capital Partners, for an undisclosed consideration

 

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