Buy and build specialist makes secondary investment to support further growth
Aliter Capital LLP (Aliter), the private equity buy and build specialist in the UK support services sector, has confirmed its recently launched second fund, Aliter Capital II, has completed a significant secondary investment in Edwin James Group.
Aliter’s relationship with Edwin James Group dates back to 2017 when its first fund, Aliter Capital I, made its first investment in the engineering services company. Edwin James Group has since completed five acquisitions, growing to employ approximately 1,000 staff, generating revenues of £160 million.
Over the past few months, the team at Aliter worked closely with senior management at Edwin James Group and its advisers to review the best options to support further growth of the company. Following this process, Aliter Capital II was identified from among several interested parties, as the best partner for the company and management.
As a result, Edwin James Group will benefit from a significant fresh injection of capital, including equity from Aliter Capital II and the renewal of its debt facilities with existing and new lenders. This will support further acquisitions and continue the company's already successful strategy. In addition, Aliter was able to deliver a strong return to its Aliter Capital I investors.
Billy Allan, managing partner, Aliter said, “Despite current market conditions, we were pleased with the significant level of interest from and engagement with potential buyers and we did consider several offers. However, drawing on our five year long relationship with the company and our knowledge and understanding of its growth potential, it was clear that the fund to fund transaction represented a great investment opportunity for Aliter Capital II and the best way forward for all parties”.
“Edwin James Group is a highly successful business with an excellent management team and large forward order book. The company is poised for another period of strong profitable growth and the team at Aliter is excited to work with the company in the next phase of its development within our newly raised fund.”
About Edwin James Group (www.edwinjamesgroup.co.uk)
Edwin James Group is an engineering services group supporting some of the biggest brands in the UK to look after their critical environments and assets.
The group operates three brands, Musk Process Services, Parker Technical Services and Peak Technology Solutions. A network of 16 offices and service centres across the UK, offers a complete range of services, including asset care, asset renewal mechanical, electrical, renewable, energy and process engineering, in addition to complex systems integration and digitalisation to support industry 4.0.
The company delivered strong results for the year ending February 2022 reporting increased revenues of £160m. High-profile contracts wins, including Sellafield and Northumbrian Water, and significant growth in the forward order book from £155m to £800m puts the organisation in a favourable position to continue delivering robust results.
About Aliter (www.alitercap.com)
Aliter Capital LLP is a specialist UK support services investor founded by a group of seasoned support services entrepreneurs and investors – Billy Allan, Greig Brown, Andy Galloway and Andrew Busby – and focuses on small and medium-sized businesses in the UK support services sector, a market valued at over £300 billion. Its approach differs from traditional private equity models by making only a limited number of selective portfolio investments to deliver dedicated hands-on support. Aliter has funds under management of more than £215 million and has now closed over 20 transactions since the beginning of 2017.