Secondary Buy Out of Integral
- Support Services
- Secondary Refinancing
- £40 million
Momentum advised Integral Holdings Limited on the refinancing of the business which was completed just nine months after the completion of the original buy out.
Freed from the restrictions of a large group Integral’s growth accelerated in the period after the buy out in July 2005. Turnover was less than £100 million in 2004 but grew to over £130 million in 2006.
The deal was subsequently awarded “Deal of the Year” at the 2006 South West Deals Awards ceremony.
Some key deal features
- A secondary refinancing valuing the business at £40 million was advised on by Momentum.
- This transaction enabled Barclays Ventures to realise over £12 million from an original investment nine months earlier of £5 million.
- The management team acquired control of the business and recorded more than a 26 times return on its investment.
- The deal was structured to give Integral an equity capital base of more than £13 million. A strong capital base is increasingly important in a number of contract tenders.
- The refinancing was supported by Lloyds TSB Commercial Finance and Lloyds TSB Corporate.
- The partners of Momentum were invited by management to make a further investment in the business.
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