Rubicon Partners and Grovepoint Capital have acquired EnServe Group Limited (formerly known as Spice plc) from Cinven, one of Europe’s leading private equity firms, in a deal reportedly valued at £60 million.
“The price tag of around £60m will reflect the sharply reduced size of EnServe since Cinven bought it in 2010 for about £360m,” said Sky News city editor Mark Kleinman.
“This is the fifth investment Grovepoint and Rubicon have made together. We bring complementary skills to our investments and we look forward to maximising the opportunity at EnServe in partnership with the management team,” said Grovepoint Capital’s Leon Blitz.
EnServe is a leading provider of infrastructure support services to the utilities sector, operating principally in the UK. The Group works in partnership with a large number of commercial, public and utility organizations, operating from more than 30 locations across the UK and employing 1,650 people.
EnServe was acquired by Cinven in December 2010, and after several divestments, today comprises the following three divisions:
The Electricity division incorporates Freedom Group, which provides engineering design, installation and maintenance services to the utility sector and wider markets, working primarily with electricity distribution networks and private network owners.
The Utility Services division operating under the Meter-U and Metro Rod brands, provides meter reading services to Energy and Water Utility companies and waste water drainage services to water companies and commercial / domestic clients.
Evolve Analytics is a software provider specializing in the identification and correction of settlement and billing error in the energy sector and providing Business Intelligence solutions to energy retailers. It uses proprietary software, combined with detailed knowledge of the energy settlement process, to unlock financial and operational performance improvements for utilities companies.
In the year ended 30 April 2015 the Group had a turnover of approximately £200m.
Grovepoint and Rubicon have joined together in partnership to make several successful investments since 2010. As the new owners of EnServe, they will combine hands-on strategic and operational management expertise with the capital and market insight needed to maximize the potential of each of the Group’s businesses.
Cinven has enjoyed spectacular returns from a number of its portfolio companies, including Guardian Financial Services, which was sold last year to AdminRe, and AMCo, a speciality medicines distributor, which yielded five times the firm’s initial investment, says Sky News.
It recently acquired the shoe and fashion brand Kurt Geiger from Sycamore Partners.