Private equity investor TDR to acquire majority stake in CorpAcq

Simon Orange, founder and chairman

European private equity investor TDR Capital LLP  has confirmed it has made a majority investment in CorpAcq, a business acquisition compounder based in Altrincham, UK.

TDR, which also counts EG and Asda in its portfolio, says it is confident that CorpAcq’s “resilient portfolio, proven origination platform and ambitious growth plans” will deliver significant upside potential. Its investment in the business will primarily support future CorpAcq acquisitions.

CorpAcq specialises in investments in well-established, stable and cash generative SMEs in the UK, with a focus on industrial products and services. Its current portfolio consists of a diverse group of over 43 companies, all delivering strong organic growth they claim.

Simon Orange and the existing CorpAcq management team will maintain a significant shareholding and continue to run the business.

Founded in 2006 by Sale Sharks Rugby Club owner Simon Orange, the brother of Take That singer Jason Orange, CorpAcq last year abandoned a £1.26bn ($1.6bn) merger with an American investment vehicle.

It had announced plans in August 2023 to merge with US firm Churchill Capital Corp VII – a special purpose investment vehicle is set up as a trust account by New York corporate financier Michael Klein.

A six month delay had postponed the combined groups listing on the New York Stock Exchange as CorpAcq Group Plc, which ultimately led to a cancellation of the merger in August 2024 due to current IPO market conditions.

Recent accounts also reveal that in 2024 CorpAcq refinanced with UBS providing the group with a £300m facility, replacing the previous arrangement with Alcentra.

Simon Orange said of the TDR deal: “We have found an investment partner in TDR that aligns with CorpAcq’s value creation strategy, shares our long-term view, and is fully supportive of the business as we embark on our next phase of growth.”

Tom Mitchell, Managing Partner at TDR Capital, said: “In CorpAcq, we identified a highly successful compounder of UK SMEs that has significant further growth potential. With our investment, CorpAcq can continue to provide its owner-friendly business combination strategy, and we look forward to working with Simon and the rest of the CorpAcq team to realise this.”

CorpAcq says its model allows founders to maintain management control and keep their existing brand. It presents itself as a long term, strategic investment partner that offers operational support to the businesses it owns.

It claims to have grown adjusted EBITDA by 17% per annum over the last five years, reaching £697m of revenues and £119m of adjusted EBITDA in the financial year ended 2023.

The deal is expected to close in Q1, subject to regulatory approvals.

Barclays and Paul, Weiss, Rifkind, Wharton & Garrison LLP advised TDR. CorpAcq shareholders were advised by UBS and Reed Smith LLP.

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