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Mar 2010 – Entec sale makes 3x money for GCP

Growth Capital Partners makes 3x money in sale of Entec to Amec plc

Entec
Growth Capital Partners (GCP), the single source equity and debt provider to lower mid market companies, has sold Entec, a leading environmental and engineering consultancy, to Amec plc, for an initial cash consideration of £61.2 million. Further payments will be made, subject to retention and performance. Amec is the FTSE 100 supplier of consultancy, engineering and project management services to the global energy, power and process industries. This is the second realisation from GCP’s fund II and represents a return of 33% IRR achieved and a 3x money multiple.

Entec provides engineering design, project management, and environmental assessment to a broad range of markets. Currently the Company is working on a project with the Environment Agency to help it to develop a more strategic approach to the deployment of small-scale hydropower in England and Wales. It has 14 offices throughout the UK and employs 700 staff.

GCP completed the MBO of Entec from Northumbrian Water in October 2005.

James Blake the partner at GCP on the board of Entec said:

“This exit is a great outcome for our fund. Entec has significantly outperformed the original business plan through a combination of top quality management and the positive drivers for demand in water, waste and energy. The team, led by Simon Armes-Reardon has done an exceptional job, growing profits organically by over £6m since the buyout.

“Entec’s position in the UK water, waste and energy sectors is a strong fit with Amec’s strategy to grow their European environmental capability.”

Simon Armes-Reardon, MD of Entec said:

“GCP has been a supportive investor and worked closely with us from the outset, providing a flexible funding structure that enabled us to deliver our growth strategy.”

Advisors:

Corporate finance advisor to shareholders: Livingstone Partners – Jeremy Furniss, Eleanor Wilkinson

Lawyers for vendors: Ward Hadaway – Martin Hulls, Katherine Hay-Heddle

Ends

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