MBO at Leicestershire testing and inspection firm
A Leicestershire testing, inspection and certification (TIC) business has undergone a management buyout after receiving support from Palatine Private Equity.
Founded in 2003, Lucion is a multidisciplinary risk management group focused on hazardous materials. The firm is headquartered in Gateshead but with offices across the UK, including a major presence in Lutterworth.
The company employs over 300 people, with its growth to date being driven both organically and through acquisition. In 2011, the firm completed the purchase of Leicester-based AOH, before adding asbestos and environmental consultancy Redhills in 2016. The investment from Palatine, together with a debt funding package provided by HSBC, provides an exit for the founder shareholders, and will allow the business to continue its buy and build growth strategy.
The deal sees Palatine back the incumbent executive management team, incuding chief executive Phil Rozier, chief risk officer Ross Boulton and chief operations officer Adam Mead. Jamie McGivern, who previously worked with Palatine at insurance broker Chase Templeton, joins the business as chief financial officer, and Patrick Morton, co-founder of Lucion, will continue with the business in an advisory capacity.
The deal was led for Palatine by Gary Tipper, Ed Fazakerley, Kieran Lawton and James Winterbottom. Lawton and Winterbottom will join the board as non-executive directors.
Palatine were advised by Gateley, Grant Thornton and RSM, with financial due diligence provided by BDO. Park Place Corporate Finance led the deal for the vendors, with Watson Burton providing legal support.
Lawton said: “With deaths from asbestos-related illnesses continuing to rise, there is a clear, ongoing need for the quality of service that Lucion provides. We have been impressed with the company’s development to date and are very much looking forward to working with Phil and the team on the next stage of the company’s journey.”
Winterbottom added: “Lucion represents an exciting opportunity to back a market-leading business within the testing and inspection sector. With its scale and national infrastructure, together with its industry-leading NexGen operating system, we can see a clear opportunity to work with the team to accelerate the company’s growth both organically and through further acquisitions.”
Rozier said: “I’m delighted to be able to pick up the Lucion baton and build upon what is already an excellent platform for growth. Lucion has always had ambitious growth plans, which can now become a reality with the support and investment from Palatine. It was important for Lucion to find the right partner, one that can not only assist with the funding of acquisitive growth but also offer a wealth of experience and knowledge to help guide us through the challenges ahead.”
Morton added: “[Co-founder] Charles Pickles and I are proud of what has been achieved at Lucion to date. Going forward, the company’s market-leading position will be further strengthened by the support that Palatine’s involvement will offer. This is a very exciting time for the business as it is positioned for further growth under the leadership of the existing management team.”
