Eurotel looks to future with £44m MBO
EUROTEL, the Yorkshire-based
telecommunications business, has been bought for £44m in a
management buyout (MBO) backed by Inflexion Private Equity.
The Halifax firm, which sells fixed line,
mobile and data services to small and medium sized businesses, has
been sold by private investment firm Young Associates who will
remain as investors.
The deal follows Eurotel's acquisitive
growth this year, having bought long-established systems resellers
Multilink in April and Advance Group in July. It has been
Europe's leading reseller for Samsung phone systems for the
last decade.
The management team of Eurotel, led by
chief executive Chris Jagusz, will remain in place.
Eurotel was founded by brothers Keith and
Robert Lutener in 1995. They sold it to Young Associates, headed by
former Tory cabinet minister Lord Young of Graffham, in 2005 for
£19m.
Eurotel is one of the largest independent
providers of telephony to SMEs in the UK.
It employs 300 people and serves more than 15,000 customers,
operating from centres in Halifax and Coventry.
Simon Turner, managing partner of Inflexion
Private Equity, said: “We have been impressed by Eurotel's
market position and future scope for growth, and look forward to
working with its excellent management team to take advantage of the
commercial opportunities in the sector.”
Chris Jagusz said: “Inflexion has a
superb track record in growing businesses, which builds on the
great work we've done with Young Associates over the last two
years. Private equity investors bring deal-making expertise and
financial discipline. We'll be growing Eurotel organically and
through acquisitions that expand our coverage for voice systems and
IT businesses. The Eurotel management team is really excited about
the company's future.”
Andrew Mainwaring and Simon Turner led the
transaction on behalf of Inflexion and will join the board of
Eurotel. Funds managed by Inflexion have invested £21.25m
taking a majority equity share holding. The management team and
Young Associates have also invested, and a package of £21.5m
of debt facilities was provided by Acquisition Finance, Lloyds TSB
Corporate Markets.
Neil Conaghan, from KPMG's Corporate
Finance practice advised Inflexion on the acquisition and said:
“Eurotel's focus on customer service and its unique sales
model in the market, position it strongly to take advantage of the
increasing levels of convergence in the IT and Communications
markets for business customers. I look forward to seeing the
business grow over forthcoming years under the stewardship of an
excellent, experienced management team.”
Inflexion specialises in the UK
sub-£50m buyout market, making equity investments in the range
of £5m to £30m in proven growing businesses.
Most recently the firm completed the
refinancing of Viking Moorings and Ilchester Cheese Company and
acquired a complementary business for Aspen Pumps.
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Advisers to Inflexion: |
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Corporate Finance: Mark Farlow, Neil |
|
Legal: James Goold, Jones Day |
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Due Diligence: KPMG, Leeds |
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IT Due Diligence: Calum Stewart, |
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Tax: Stephen Quest, Grant Thornton |
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Insurance: Richard Worker, Marsh |
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Banking: Neil Price, Adrian Peckham, |
| Advisors to Young Associates: |
| Corporate Finance: James Sandford, Investec Investment Banking |
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Chris Godsmark, Christian Maher, Oakley |
| Legal Dee Sian, Addleshaw Goddard |
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Vendor Due Diligence Philip Abram, More articles in
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