Inflexion scoops huge return on Viking sale

INFLEXION, the Manchester private equity house, has scored a huge profit on its investment in an offshore services company, which it has sold in a deal worth around £170m.

Viking Moorings of Aberdeen has been bought by HSBC Private Equity. Debt finance was provided by four banks including the  Manchester office of Yorkshire Bank’s corporate and structured finance division. Other lenders were  RBS, Lloyds Banking Group and HSBC.

Inflexion bought Viking, which rents mooring equipment used to secure mobile drilling rigs, for £22m in Janaury 2006 and has invested nearly £50m in growing the business, particularly in building-up its rental fleet and supporting its move into new geographical areas such as the Far East and West Africa.

In that time the company’s earnings before interest tax, depreciation and amortisiation have rocketed from £5m to £28m. Inflexion has maintained a miority stake in the business.The investment was led by Tim Smallbone and Cath Richardson at Inflexion.

Andrew Thomas, James Gaskell and David Weavers from NM Rothschild’s office in Manchester led the sale process, which began 18 months ago.

Mr Thomas said: “This is an excellent result for Inflexion, which have invested heavily in Viking to grow sales, profits and employee numbers.

“We have been working on this deal for 18 months – the process was obviously affected by the banking crisis which followed the collapse of Lehmans.

“Viking Moorings is a great growth story and demonstrates the benefit of good private equity investment in a business.”