Key highlights from the period include:
- Q4 2018 was extremely active, with investors pushing to close transactions before the Christmas break. Not only was the total number of buyout deals completed in Q4 2018 56% higher than the same quarter last year, activity levels for the quarter also reached a ten-year high
- During 2018, the most notable trend was the sharp rise in primary buyout deals, with 140 deals completed in FY 2018 (+82%) compared to 77 in FY 2017. This can be attributed to the deliberate private company origination strategies by investors that appeared to pay-off
- Q4 2018 saw twice as many exits to secondary buyouts versus trade, indicating a continued strong appetite from private equity houses for UK mid-market assets and their ability to outmanoeuvre less agile trade acquirers
- Business services, industrial products & services and TMT had a high performing 2018 in the lead up to Brexit, with deal activity in each of the sectors significantly surpassing their levels over the past four years. Unsurprisingly, given declining consumer confidence and continued high street woes, the leisure, retail & consumer sector was relatively quiet, whilst investment in the healthcare sector remained steady
- The continued ability for funds to raise cash in this environment indicates that LP’s remain positive about the outlook of both UK and European opportunities; the key question for 2019 is how these investors can deploy their capital in more resilient assets, without being forced to overpay
- Looking ahead, the macro-Brexit uncertainty and a constantly changing political environment “will inevitably lead to lower levels of activity” in H1 2019, said Richard Madden, UK CEO of DC Advisory, who recently spoke with Private Equity News. Madden continued to comment on the pre-Brexit landscape, “the best-case scenario would unquestionably be a new vote to remain in the EU. The next best scenario is a swift and definitive agreement, which eliminates the volatility.”
Total UK mid-market buyout activity
2015 – 2018 total UK mid-market buyout deals by sector
2015 – 2018 total UK mid-market buyout deals by source and exit
Who’s been fundraising?
October
Carlyle held a second close of Carlyle Europe Partners V, at €5,000m
Epiris held a final close of Epiris Fund II, at £821m
Hg held a final close of Hg Saturn, at £1,500m
Horizon Capital held a final close of Horizon 2018, at £200m
TPG held a first close of TPG Tech Adjacencies, at US$1,500m
Vista Equity Partners held a first close of Vista Equity Partners Fund VII, at US$16,000m
November
NVM Private Equity held a final close of NVM Private Equity Vintage III, at £142m
Carlyle held a first close of Carlyle Alternative Opportunities Fund (undisclosed amount)
Investcorp held a final close of Investcorp Technology Partners IV, at US$400m
Mid Europa Partners held a first close of Mid Europa Fund V, at €800m
Motion Equity Partners held a first close of Motion Equity Partners Fund III, at €150m
Providence Equity Partners held a second close of Providence Equity Partners VIII, at US$5,000m
TPG held a first close of TPG Partners VIII, at US$14,000m
Triton Partners held a final close of Triton Fund VI, at €5,000m
See our latest M&A and debt advisory transactions >
Recent transactions by sector
Healthcare
Blatchford
CBPE Capital acquired Blatchford, the prosthetics and orthotics supplier, for an undisclosed consideration
Core Assets Fostering
CapVest Partners acquired Core Assets Fostering, the company engaged in providing foster care services, for an undisclosed consideration
European LifeCare
Inflexion Private Equity acquired European LifeCare, Europe’s largest provider of vaccinations, for an undisclosed consideration
Hallmarq Veterinary Imaging
August Equity acquired Hallmarq Veterinary Imaging, the specialist in advanced diagnostics for equine and companion animals, for an undisclosed consideration
Lynwood School of Veterinary Nursing
BC Partners’ portfolio company VetPartners acquired Lynwood School of Veterinary Nursing, the veterinary school and animal practice, for an undisclosed consideration
Poshchair Medical
NorthEdge Capital’s portfolio company Direct Healthcare Group acquired Poshchair Medical, the provider of rental services for bariatric equipment, seating, beds and lifting solutions, for an undisclosed consideration
Prism UK Medical
Limerston Capital acquired Prism UK Medical, the manufacturer and provider of specialist healthcare equipment, from LDC, for an undisclosed consideration
Industrial products & services
Arnold Laver & Company
Cairngorm Capital Partners acquired Arnold Laver & Company, the company that imports, distributes and manufactures a wide range of timber, panels, decorative surfaces and joinery products, for an undisclosed consideration
Barber of Sheffield
RJD Partners sold its portfolio company Barber of Sheffield, the company that manufactures and markets specialised stainless steel surgical needles, to Nexus Brands, for an undisclosed consideration
Bluegrasscoms
Providence Equity Partners’ portfolio company OEConnection acquired Bluegrasscoms, the automotive business consultancy and service provider focused on the collision and aftersales market segments, for an undisclosed consideration
BWA Water Additives
Bain Capital’s portfolio company Italmatch Chemicals acquired BWA Water Additives, the chemicals company specialising in water treatment technologies, for an undisclosed consideration
Palatine Private Equity acquired CET Structures, the provider of specialist outsourced services to the infrastructure, civil engineering, construction, property and insurance sectors, from Dunedin Capital Partners, for an undisclosed consideration
Cookstown Textile Recyclers; Nathan’s Wastesavers
Waterland Private Equity’s portfolio company Textile Recycling acquired Cookstown Textile Recyclers, the textile recycling company, and Nathan’s Wastesavers, the textile recycling company engaged in sorting, grading and processing of textile material, for an undisclosed consideration
Cosan Lubes Investments
CVC Capital Partners acquired a stake in Cosan Lubes Investments, the company engaged in manufacturing of mobil-branded specialty lubricants, for a consideration of £89m
Deep Sea Electronics
Caledonia Investments acquired Deep Sea Electronics, the company that designs and manufactures engine and generator control modules and accessories, for a consideration of £162m
EnerMech
The Carlyle Group acquired EnerMech, the company engaged in providing mechanical engineering services to the energy services sector, from Lime Rock Partners, for a consideration of £450m
FoundOcean
Ambienta sold its portfolio company FoundOcean, the provider of subsea and offshore cementing services for the global energy construction industries, to CAPE Investment Partners, for an undisclosed consideration
Gritit
Total Capital Partners acquired Gritit, the winter services and grounds maintenance company that provides gritting and snow clearance services to commercial properties, for an undisclosed consideration
Helix Tool Company
Cairngorm Capital Partners acquired Helix Tool Company, the full-service maintenance, repair, and overhaul distribution business providing engineering components and services to clients, for an undisclosed consideration
Indigo Pipelines
Scottish Equity Partners sold its portfolio company Indigo Pipelines, the company engaged in providing gas transportation services, to Arjun Infrastructure Partners, for an undisclosed consideration
Pirtek
PNC Riverarch Capital acquired Pirtek, the industrial services company that provides emergency, on-site replacement of hydraulic hoses, from The Halifax Group, for an undisclosed consideration
Bay Tree Private Equity acquired Prime Light Electrical, the company that sells and distributes lighting, electrical, and electronic components to the lighting industry, for an undisclosed consideration
Ridgeons
Inflexion Private Equity Partners’ portfolio company Huws Gray acquired Ridgeons, the company engaged in distributing building materials, timber services, plumbing, kitchens, and bathroom products, for an undisclosed consideration
Total Rail Solutions
Rutland Partners acquired Total Rail Solutions, the provider of operated and non-operated road-rail plant, sub-contracting services and labour to rail sites, for an undisclosed consideration. Rutland Partners was advised by DC Advisory, see more >
Troika Systems
Fresh Equity acquired Troika Systems, the designer and developer of quality control 3D anaylsis management systems for the print industry, for an undisclosed consideration
Valpak
EMK’s portfolio company Reconomy acquired Valpak, the company engaged in providing environmental compliance, recycling, and sustainability solutions to organisations, for an undisclosed consideration
Leisure, retail & consumer
Bowland Fell Holiday Park
Phoenix Equity Partners’ portfolio company Bridge Leisure Parks acquired Bowland Fell Holiday Park, a holiday park operator in Yorkshire, for an undisclosed consideration
British Waterways Marinas
LDC acquired British Waterways Marinas, the UK’s largest operator of inland marinas, for an undisclosed consideration. LDC was advised by DC Advisory, see more >
Gill
YFM Equity Partners sold its portfolio company Gill, the British performance apparel brand, to the Myers Family Office, for an undisclosed consideration
Mangar International
YFM Equity Partners sold its portfolio company Mangar International, the company that designs, manufactures and supplies inflatable bathing equipment, to a portfolio company of Groupe IDI, for an undisclosed consideration
Montezuma’s Direct
Inverleith acquired Montezuma’s Direct, the manufacturer of premium artisanal chocolate, for an undisclosed consideration
Premier Rugby
CVC Capital Partners acquired a stake in Premier Rugby, the UK-based rugby union competition, for a consideration of £200m
Seabrook Crisp
LDC sold its portfolio company Seabrook Crisp, the producer and supplier of potato crisps, to Calbee, for an undisclosed consideration
Shuttercraft
Beechbrook Capital acquired Shuttercraft, the distributor of own brand shutters, for an undisclosed consideration
Vivid Toy Group
Privet Capital sold its portfolio company Vivid Toy Group, the manufacturer of toys, games, arts and crafts, to Goliath Games, for an undisclosed consideration
Wagamama
Duke Street sold its portfolio company Wagamama, the chain of noodle bar restaurants, to The Restaurant Group, for a consideration of £357m
Services
Acton Banks
Maven Capital Partners acquired Acton Banks, the company providing healthcare staffing services, for an undisclosed consideration
Alliance in Partnership
Key Capital Partners sold its portfolio company Alliance in Partnership, the company engaged in providing catering services to schools, to Sodexo, for an undisclosed consideration
Amberon
H2 Equity Partners acquired Amberon, the provider of traffic management services, from LDC, for an undisclosed consideration
Atlas Knowledge
HgCapital sold its portfolio company Atlas Knowledge, the provider of health, safety, environmental and other regulatory and technical compliance services, to a portfolio company of The Riverside Company, for an undisclosed consideration
CER Staffing Solutions
Endless sold its portfolio company CER Staffing Solutions, the company engaged in providing public sector recruitment services across education, healthcare, to Castlerock Recruitment Group, for an undisclosed consideration
Content and Code
ECI Partners’ portfolio company IT Lab acquired Content and Code, the company providing Microsoft consultancy services, for an undisclosed consideration
Cross Rental Services
Lonsdale Capital Partners acquired Cross Rental Services, the provider of rental services to retail and commercial customers, for an undisclosed consideration
HB Education
Midlothian Capital Partners acquired HB Education, the provider of residential outdoor education and adventure trips for school children, for a consideration of £467m
Henlow Recruitment Group
Graphite Capital’s portfolio company nGAGE Specialist Recruitment acquired Henlow Recruitment Group, the QuantTech recruitment company, for an undisclosed consideration
Ikon Science
Great Hill Partners acquired Ikon Science, the provider of software technology and consulting services to the upstream oil and gas sector, from FPE Capital, for an undisclosed consideration
Knight Square
Lexington Partners acquired a stake in Knight Square, the company engaged in property management, installation and maintenance of communication and security systems, from Electra Private Equity, for a consideration of £21m
Lumesse
HgCapital sold its portfolio company Lumesse, the software provider that designs and delivers talent management software solutions for customers, to a portfolio company of Vector Capital, for an undisclosed consideration
M.J. Quinn Integrated Services
Palatine Private Equity sold its portfolio company M. J. Quinn Integrated Services, the provider of design, installation and maintenance of telecoms, mechanical, electrical, fire detection and suppression systems, to Constructel France, for a consideration of €35m
Moneypenny
ECI Partners acquired Moneypenny, the telephone answering specialist, for an undisclosed consideration
National Industrial Fuel Efficiency Service
Hoizon Capital’s portfolio company Bellrock Property & Facilities Management acquired National Industrial Fuel Efficiency Service, the provider of engineering, property and energy consultancy, for an undisclosed consideration
PMC Treasury
Inflexion Private Equity Partners acquired PMC Treasury, the provider of treasury and risk management solutions, for an undisclosed consideration
S H Landes
Dunedin Capital Partners’ portfolio company Hawksford Trust Company acquired S H Landes, the company providing auditing services, for an undisclosed consideration
Send For Help
ECI Partners acquired Send For Help, the lone worker protection provider, for an undisclosed consideration
Servelec Controls
Alcuin Capital Partners acquired Servelec Controls, the supplier of integrity-based information solutions, process control and management services, for an undisclosed consideration
Symphony Ventures
Livingbridge sold its portfolio company Symphony Ventures, the company engaged in providing consulting, implementation and managed services to enterprise clients, to Sykes Enterprises, for a consideration of £52m
TMT
Adam Phones
Inflexion Private Equity Partners’ portfolio company Radius Payment Solutions acquired Adam Phones, the mobile and fixed-line communications provider, for an undisclosed consideration
Arden Group
LDC’s portfolio company Babble Cloud has acquired Arden Group, the IT and telecoms services company, for an undisclosed consideration
BCN Group
Beech Tree Private Equity acquired BCN Group, the IT managed services provider, for an undisclosed consideration
Charterhouse Voice & Data
August Equity acquired Charterhouse Voice & Data, the provider of voice communication, data, hosting and cyber security services, for an undisclosed consideration
CloserStill
Providence Equity Partners acquired CloserStill, the organiser of business-to-business exhibitions, from Inflexion Private Equity Partners and NVM Private Equity, for an undisclosed consideration. CloserStill was advised by DC Advisory, see more >
Communisis
Aquiline Capital Partners’ portfolio company Output Services Group acquired Communisis, the company engaged in printing, direct marketing, internet communications and data management, for a consideration of £149m
Esteem Systems
Primary Capital Partners sold its portfolio company Esteem Systems, the provider of IT infrastructure services and solutions, to ROC Technologies, for an undisclosed consideration
Exterion Media
Platinum Equity sold its portfolio company Exterion Media, the outdoor media company engaged in providing custom media solutions to outdoor advertising agencies, to Global Radio UK, for a consideration of £400m
Feefo
Vespa Capital acquired Feefo, the SaaS consumer ratings and reviews platform, for an undisclosed consideration
Indigo Telecom
Growth Capital Partners acquired Indigo Telecom, the company that designs, plans, builds, supplies, manages and maintains telecommunications networks, from Maven Capital Partners and YFM Equity Partners, for an undisclosed consideration
Ink
Endless sold its portfolio company Ink, the producer of in-flight digital and print media, and targeted advertising, to The Stagwell Group, for an undisclosed consideration
Miles 33
Ethos Partners acquired Miles 33, the provider of software to the publishing and financial services sectors, for an undisclosed consideration
Mycom
Inflexion Private Equity Partners acquired Mycom, the company engaged in providing OSS Service Assurance software solutions and ICT engineering services to the telecoms industry, from Clearlake Capital, for an undisclosed consideration
Open Health Communications
Amulet Capital Partners acquired Open Health Communications, the company that offers healthcare communications and market access services, for an undisclosed consideration
Photobox
Lexington Partners acquired a stake in PhotoBox, the provider of digital photo services, from Electra Private Equity, for a consideration of £98m
RTLS SmartSpace
Investcorp Technology Partners acquired the RTLS SmartSpace business of Ubisense Group, the company that delivers mission-critical enterprise asset tracking and geospatial systems, for a consideration of £35m
TES Global
Providence Equity Partners acquired TES Global, the digital education company, from TPG Capital, for an undisclosed consideration
The National Exhibition Centre
Blackstone acquired The National Exhibition Centre, the venue management company that operates venues for conferences, entertainment, exhibitions, live music and sports events, from LDC, for a consideration of £800m
Ticketer
Tenzing Private Equity acquired Ticketer, the smart bus ticketing technology provider, for an undisclosed consideration
TotallyMoney
Scottish Equity Partners, along with Elliott Advisors (UK), acquired a stake in TotallyMoney, the credit score and report firm, for a consideration of £29m
UKFast
Inflexion Private Equity Partners acquired a stake in UKFast, the web hosting company, for a consideration of £122m
We Are Discounts
Bridgepoint acquired We Are Discounts, the provider of NHS Discounts and NHS staff benefits, for an undisclosed consideration
Western Business Exhibitions
Phoenix Equity Partners’ portfolio company Nineteen Group acquired Western Business Exhibitions, the company that conducts trade exhibitions, for an undisclosed consideration
