LDC Sponsors MBO of Homeserve Emergency Services

LDC has sponsored an £11 million management buyout of Homeserve Emergency Services, a UK-based provider of home emergency fulfillment services to the domestic insurance industry, from Homeserve PLC.

PRESS RELEASE

LDC, the Midland’s leading private equity provider, has today announced that it has completed its investment in the £11million management buy-out of Homeserve Emergency Services division (“HES” or “the business”), a provider of home emergency fulfilment services to the domestic insurance industry, from listed home assistance membership business Homeserve plc. The deal forms part of LDC’s progressive investment strategy, having already placed over £150million of funding in ten previous deal transactions so far in 2009. HES consists of three trading businesses – Homeserve Glass and Locks (“HGL”), a market leading emergency response provider of glazing and locks; Homeserve Chem-Dry (“HCD”), a disaster restoration company for escape of water damage, accidental damage, fire and flood; and Homeserve Content Services (“HCS”), a validation and replacement product search software solution for content claims. Both HGL and HCD have a significant share of the supply chain work for the top UK insurers. HGL is the market leading provider of glazing and locks to the insurance sector, with a capability and vision to diversify into commercial markets. It is the UK’s fourth largest locksmith and employs over 300 people across its national network – providing a streamlined 24 hour/7 days per week service to its blue chip customer base. HCD is one of the largest disaster recovery restoration company’s in the UK and one of the most recognised brands in the sector, with further scope to grow in the UK insurance and domestic market. The HES business will rebrand as Evander Group. The management buy-out team is being led by Chief Executive Jonathan Simpson-Dent, together with Alan Horton, Managing Director of HGL, Mark Taylor, Managing Director of HCD and Simon Hancox, Managing Director of HCS. The deal was led by Managing Director LDC Midlands, Martin Draper and Chris Hurley, with additional support from Alistair Pendleton, Andy Lyndon and Paul Figgins. Commenting on the investment, Jonathan Simpson-Dent, Chief Executive of Evander said: “We are delighted to be acquiring the HES businesses, which have developed through the provision of excellent customer service and long term relationships with our insurance and commercial clients. The management team is excited about the relationship with LDC and our common belief in the future development potential of these businesses”. Commenting on the transaction, Chris Hurley at LDC added: “Evander is a high quality, market leading business and we are delighted to be making an investment in order to help drive future progression. “LDC remains wholly committed to working with innovative businesses and we believe that HES, with its strong brands and clear opportunities to deliver significant future growth, represents an attractive investment opportunity”. Martin Draper, Managing Director LDC Midlands said:
“Notwithstanding the difficult and uncertain economic environment, we have maintained our extremely positive ‘business as usual’ attitude with a real focus on finding and supporting high quality management teams. “The MBO of HES is the fourth transaction this year. In April, we completed the MBOs of both Cranswick Pet & Aquatics and Nuclear Engineering Services Limited and these were quickly followed by Global Radio’s sale of eight of its Midland Radio licences to LDC in May. Completing this deal is just the beginning of our relationship and our strategy is to accelerate growth both organically and through acquisitions. We intend to build further upon these deals during the remainder of 2009 and beyond”. The transaction was completed with support from Birmingham-based professional advisers; with Roger Buckley, Satvir Bungar, Mark Harrison and Gurinder Sunner at BDO Stoy Hayward in Birmingham acting as lead advisers and Graham Young at HSBC providing debt facilities. Maurice Dwyer at Wragge & Co in Birmingham acted as legal adviser to Newco and LDC, with Sue Lewis at Eversheds in Birmingham providing legal advice to HSBC. Lee Clifford of Freeth Cartwright in Birmingham advised HES’s management team and Russell Worrall, Jon Cooper and Jason Davies at PriceWaterhouseCoopers in Birmingham provided financial due diligence on the deal. Financial advisors to the vendor were Tim Morris, John Houlden and Nick Gillott of Ernst & Young LLP and legal advisors to the vendor were Paul Harkin and Nicole Livesey of Pinsent Masons. Issued on behalf of LDC by Golley Slater Press information: Katie Dale, Golley Slater. Telephone: 0121 384 9743. LDC notes to Editors: 1. LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority. 2. LDC has, since 1981, completed over 400 investments, has ongoing interests in over 60 businesses across the UK. 3. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions. 4. LDC invests in a broad range of sectors and has particular experience in financial services, healthcare, industrials, IT & software, leisure & media, retail & consumer, and support services. 5. LDC is the leading private equity company in the UK mid-market. Recent transactions include investments with Eveden Group, Avery-Weigh Tronix, CMG, Emprise, Kimberly Access, The Pallet Network, VSG Holdings, Omega Red, Cranswick Pet & Aquatics, Nuclear Engineering Services Limited and Orion Media, plus exits from Electrium, Aqualux, Cardsave, Paragon Holding Ltd, Steelite International, Avery Weigh-Tronix and Britton Group. 6. LDC has fourteen offices – Aberdeen, Amsterdam, Birmingham, Bristol, Edinburgh, Hong Kong, Leeds, Liverpool, London, Manchester, Newcastle, Nottingham, Reading and Southampton. 7. For further information visit www.ldc.co.uk