3i Group plc has agreed to acquire JMJ Associates for $175 million. Under terms of the agreement, 3i will purchase a 55% stake alongside management. Headquartered in Austin, Texas, JMJ Associates is a global management consulting firm.
21 OCTOBER 2013
3i invests in global management consultancy JMJ Associates
3i Group plc (“3i”), an international investor, agrees to invest in JMJ Associates (“JMJ” or “the company”), a leading, global management consultancy.
3i, and co-investment funds managed by 3i, will acquire a 55 percent stake alongside management. The enterprise value of the transaction is £108m / $175m. This transaction is subject to customary conditions.
Established in 1987, JMJ is primarily focused on supporting multinational companies, who have complex capital programmes and operations, to significantly enhance their workplace safety and project and organizational team performance. JMJ accomplishes this by transforming the cultural and behavioural approach of its clients towards worker safety, the delivery of capital projects and organizational performance. JMJ has offices in London, Austin, Houston, Doha, Johannesburg, Perth, Brisbane, Busan, Shanghai and Singapore. The company’s high-quality, and longstanding, customer base includes market leading businesses in the Oil and Gas, Petrochemical, Mining and Metals and Construction industries globally.
JMJ operates in a high growth market with demand for the company’s services being driven by a number of factors, including outstanding business results, strong underlying end-market growth, increasing complexity and size of major capital projects, rising global spending on workplace safety, increased adoption of cultural, behavioural and leadership based approaches to improve organizational performance, and continued growth in the utilization of external expertise in safety and projects execution services. Over the last three years, revenue has grown at a CAGR of 41% and EBITDA has increased by 86%.
Following the company’s recent strong growth, the current shareholders of JMJ decided to seek an investor to support the continuing expansion of its international footprint. 3i will support the company’s next stage of development by providing operational and strategic expertise, as well as using its international network to identify and support further growth opportunities.
Alan Giddins, Managing Partner, and Andrew Olinick, Principal, will join the board from 3i.
Simon Borrows, Chief Executive, 3i Group commented: “We continue to see attractive investment opportunities, particularly businesses with a strong international footprint. We are pleased to be investing in JMJ Associates, which operates in a high growth sector where we have extensive experience and knowledge.” 2
Alan Giddins, Managing Partner, 3i Private Equity, commented: “JMJ Associates is a truly exceptional business with a strong management team who we have known for some time. We have significant experience of the end markets in which JMJ operates and have a strong track record of working with consultancy businesses, so are well placed to work in partnership with management to take advantage of the sector’s exciting growth opportunities.”
Stephen Portner, Chief Executive of JMJ Associates, commented: “We are delighted to be partnering with 3i. We wanted a partner with a strong cultural fit who understands professional services and our underlying markets and believe 3i provides this.”