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 Conaghan, KPMG |
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Legal: James Goold, Jones Day |
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Due Diligence: KPMG, Leeds |
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IT Due Diligence: Calum Stewart, Intuitus |
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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, Acquisition Finance, Lloyds TSB Corporate Markets |
| Advisors to Young Associates: |
| Corporate Finance: James Sandford, Investec Investment Banking |
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Chris Godsmark, Christian Maher, Oakley Corporate Finance |
| Legal Dee Sian, Addleshaw Goddard |
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Vendor Due Diligence Philip Abram, Graham McConnell, KPMG More articles in
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