MH Article

Cleaning specialist in BIMBO

A provider of contract cleaning, security and maintenance for retail and business properties has been bought in a £10 million buy-in management buy-out.

The acquisition of London Property Maintenance was backed by private equity firm Sovereign Capital Partners Banking group Kaupthing Singer and Friedlander provided debt.

In addition, Sovereign committed £10 million of equity to support LPM’s buy and build strategy which will develop the business through organic and acquisitive growth.

The management team comprises chief executive David Howroyd, from Rentokil Initial, chief operating officer Ian Perfect. And the company’s existing Senior operational team Michael Fetherston-Dilke, formerly of Promanex and Compass Cleaning, has been appointed chairman.

()Marriott Harrison advised the management team. It was led by corporate partner Duncan Innes, assisted by Ben Devons and Dan Wicksteed Marriott Harrison continues to act for LPM (.)

()Innes said: “This was a traditional BIMBO transaction that involved equity, loan stock, employees, management and sales. The underlying challenge was to create a synergy between the two new management team members, the existing team member and the investors, and this has evidently been achieved “

“All the parties were keen to complete the transaction and get on with running the business as quickly as possible and the transaction was successfully completed in just 18 days after the initial instruction.”(.)

BCMS Corporate was adviser to the vendor, Chris Ryan who led the transaction said: The deal secured with Sovereign Capital represented a significant improvement on alternative offers from a number of related businesses which were already at advanced stages of negotiation.

“Once the deal was agreed a detailed due diligence process taking 12 months verified the quality and integrity of our client’s business and our representation of the business in our initial information Memorandum. Despite the lengthy due diligence process we continued to reinforce the quality and value of our client’s business, ensuring that the deal was still completed at the agreed price.’’

HW Corporate Finance provided financial due diligence to Sovereign and the bank. Its team was led by Andy Sumner with support from Phil Sands Sumner added: “The business operates as a well respected provider in its sector and with the backing of Sovereign is extremely well placed to drive further consolidation in the sector.”

Liberty Corporate Finance was corporate finance adviser to Sovereign and SJ Berwin was its legal adviser. London- based LPM was founded in 1978.It focuses on office, industrial, retail and specialist buildings in the Southeast, but provides services nationwide Its clients include shopping centres and office buildings. LPM also offers pest control refuse collection and services covering areas such as janitorial supplies, Windows, carpets office equipment kitchens, stone and exteriors.