Inflexion Private Equity, a mid-market private equity manager, has led the secondary buyout of Pims Group, a UK waste water support services company from Gresham Private Equity.
Pims, which provides domestic and commercial sewerage and rainwater pump systems and services throughout the UK, will yield Gresham a return on its investment of 3.4 times.
Since Gresham led the £12 million (€15.3 million; $24 million) buyout in December 2004, the management team led by Charlie White has invested in the company’s infrastructure, consolidated its operations and expanded its sales force. This has resulted in a doubling of sales in just three years. Employee numbers has increased by over a third to 114.
Charlie White and the existing management team are remaining with the company and are committed to maintaining PIMS’ excellent track record. Gresham remains a minority shareholder.
Simon Turner, managing partner of Inflexion Private Equity, said: “Gresham bought well and did the institutional piece of buying out the founders, upgrading and expanding. There is a lot of momentum to go from a regional player to a national player.”
Inflexion plans to enhance the company’s growth both organically and by acquisition.
The company operates in a fragmented marketplace estimated to be worth about £725 million in 2007 with few competitors of similar scale and coverage. The scale of the marketplace rises to £1 billion when service, installation and consultancy services are added to product sales.
Inflexion has taken a majority equity share holding; the management team has also invested, and a package of debt facilities was committed by HSBC.