LONDON, June 10, 2013 /PRNewswire/ --
Mobeus Equity Partners ("Mobeus") has sold the major operating subsidiary of portfolio company British International Helicopter Services ("BIH") to Patriot Aerospace Group ("Patriot") in the latest phase of an asset disposal process which has now generated a return of c. £6 million to Mobeus advised VCTs, approximately 2x the original investment cost.
Mobeus backed the secondary MBO of BIH, a leading independent provider of helicopter services to civilian and military markets, from 3i in 2006. Headquartered in Sherborne, Dorset, BIH held long-term Royal Navy and MOD contracts out of several locations in the UK and RAF Mount Pleasant in the Falkland Islands, in addition to providing oil and gas exploration support work.
In recent years, BIH had faced challenging economic conditions, notably a continuous decline in passenger numbers on its scheduled helicopter passenger service between Penzance and the Isles of Scilly. This trading deterioration necessitated a change of strategy by management in order to protect stakeholder value and employment by disposal of its long -term contracts to acquirers intending to expand their presence in military service provision. In August 2012, the company announced the closure of the Isles of Scilly route and the Penzance heliport was subsequently sold for redevelopment, enabling all of the original bank debt to be repaid. In May 2013, BIH sold its major operating subsidiary to Patriot enabling repayment in full of all institutional borrowings and delivering an overall 2x return to the Mobeus advised VCTs. The deal has made Patriot the largest British owned helicopter company in the UK.
Mike Walker, Partner, comments: "BIH is an excellent example of a committed management team reacting to a deteriorating trading environment, adapting its strategy and working extremely hard to produce an outcome which has delivered a good return to stakeholders and preserved employment in a sale to a significant UK operator. We are delighted with the achievement of the team in very difficult circumstances."
Issued by Mobeus Equity Partners LLP, of 30 Haymarket, London, SW1Y 4EX, registered in England & Wales number OC 320577, authorised and regulated by the Financial Services Authority, number 456538. This material is for information only and does not constitute an offer to buy or sell an investment nor does it solicit any such invitation. The information contained in this email is believed to be accurate at the date of publication but no representation or warranty stated or implied is made or given by any person as to its accuracy or completeness and no responsibility or liability is accepted for any such information or opinion.
Mobeus Equity Partners LLP ['Mobeus']
Mobeus is a leading UK VCT Manager with a focus on MBO transactions. Mobeus advises four Income & Growth VCTs with approximately £170 million Funds under Management.
Its recent transactions are:-
Investment Deal (GBPm) Business/Location Services to the art and ATG Media 4.5 antiques industry London Gro 5.7 Baby sleeping products Exeter Vehicle cleaning and valet Motorclean 3.2 services Basildon Technology based consultancy Tessella 5.6 services Abingdon Service plans for the motor EMaC 6.0 trade Crewe Equip Outdoor Branded outdoor equipment Technologies 4.5 and clothing Alfreton Vehicle cleaning and valet Motorclean 6.0 services Basildon
Cost Proceeds Exit (GBPm) (GBPm) Business/Buyer Location Food Brookerpaks 0.5 2.0 distribution Management Kent Camwood 0.5 2.0 IT services Management London Online ski Growth and cruise Capital Iglu.com 4.3 11.1 travel agent Partners London Manufacturer of digital sound mixing DiGiCo 4.6 20.5 consoles Isis Chessington, Surrey Application management AppDNA 0.5 16.0 software Citrix London Manufacturer Original of beauty Additions 1.0 4.2 products LDC Hayes, Middlesex
For more information, visithttp://www.mobeusequity.co.uk
For further information please contact:
Laura Marsh - +44(0)20-7024-7617.
SOURCE Mobeus Equity Partners LLP