US investor buys into Brookson

US private equity firm the Riverside Company has taken a stake in the Warrington accountancy firm Brookson.

Brookson, which has its headquarters in Warrington and a satellite office at MediaCityUK, provides services to contractors, and 10,000 self-employed professionals across the UK.

A statement about the deal did not divulge the size of Riverside’s stake or the value of the transaction, although the latter is understood to be more than £45m.

According to the most recent information at Companies House the business is controlled by Richard and Carolyn Nevinson and it made a pre-tax profit of £356,000 on revenues of £56.9m in the year to September 2013.

The business said Riverside’s investment would enable it to develop its management information software product called Brookson Connect and help it break into new markets through organic growth and acquisitions.

Riverside, which has a global presence, opened an office in London in late 2012 and has been looking for regional deals. Executive Trey Vincent told TheBusinessDesk.com last year that the firm was looking to conduct deals worth £30m-£80m and was particularly interested in taking majority stakes in companies that want to expand internationally. Its last foray into the North West was Runcorn-based water treatment company Sentinel Performance Solutions which it sold to London-based Electra Partners for £43m in 2011.

A team from investment bank Altium comprising managing director Simon Lord, assistant director Adam Sivner, associate Mark Smith and director Tim Richardson advised Brookson on the deal.

Mr Lord said: “The process demonstrated that Brookson has a premium offering for its contractors in a thriving sector, evidenced by the company’s highly impressive recent growth. Brookson has developed an outstanding service via a market-leading platform with a management team of the highest quality, and in Riverside they have found the perfect investor to take the business to the next stage.”

A team at Addleshaw Goddard led by Roger Hart and Paul Medlicott, and including Jamie Partridge and George Danczak provided legal advice to the Brookson shareholders provided legal advice to the Brookson’s shareholders and EY provided vendor due diligence.

Accountancy firm Grant Thornton advised Riverside and Pinsent Masons provided legal advice.

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