Capita’s ALS swoop takes Deal of the Month
THE acquisition of Applied Language Solutions completed just before Christmas has been judged TheBusinessDesk.com’s Deal of The Month.
In a month where activity picked up and saw five strong transactions, including two overseas acquisitions (Scapa and Advanced Medical Solutions), Lookers’ £100m refinancing, the secondary buyout of specialist retailer American Golf, the trade sale of ALS to Capita, won the day.
The deal which will be worth up to £67.5m if targets are met, represents an entrepreneurial success story for founder Gavin Wheeldon, who will remain with the business to drive its growth.
With four votes from our 10 judges ALS pipped both the sale of Warrington retailer American Golf and Advanced Medical Solutions’ £55m acquisition of German-based Resorba which both secured three votes each.
Addleshaw Goddard’s Roger Hart, Andy Parker from PwC, Jonathan Watkins from DLA Piper and Adele Librae from law firm Lewis Hymanson Small all backed ALS as their top deal.
Jonathan Watkins said: “This was an opportunity for a founder entrepreneur to secure a high exit multiple, using an earn out mechanism, which I think we will see increasing amount of over the coming years as a way to bridge valuation gaps.
“Capita continues to consolidate the FM/outsourcing sector and add to their already wide portfolio of services”.
Adele Librae adds: “As a wonderful example of a personal success story, it is accessible on many levels, from its humble beginnings in Gavin Wheeldon’s Huddersfield bedroom, to the contract wins with several household name businesses and now the sale to outsourcing giant Capita.
“Budding North West entrepreneurs should take note. The ALS deal demonstrates that it isn’t always necessary to invent something entirely new to be successful; sometimes using modern technology to breathe new life into a traditional service translates to success.”
