Seneca’s Corporate Finance team has advised the management team of Utiligroup on the management buy-out (“MBO”) of the business from parent company Bglobal Plc. The MBO is being funded by Manchester based private equity funder NorthEdge Capital.
The sale of Utiligroup, which is based in Chorley, is subject to the approval of Bglobal’s shareholders and is the fifth transaction by NorthEdge Capital from its maiden £225m fund.
Bglobal said it had received several offers to acquire Utiligroup following the launch of its strategic review in August 2013 and it decided to gauge interest in the sale in early 2014 as it was agreeing a deal to sell Bglobal Metering, a deal which was completed in April 2014.
Utiligroup employs 88 staff and the MBO is being led by chief executive Matthew Hirst and chief operating officer Andrew Green. Steve Gosling will join as chief financial officer and Martin Evans, an original founder of the business, as strategy director.
NorthEdge’s investment will be used for new software development and allow the business to capitalise on opportunities in the market.
The deal was led by Seneca’s Head of Corporate Finance Gordon Lane, supported by Andrew Stubbs and Chris Summerscales.
The sale is conditional on approval of Bglobal’s shareholders at a meeting on 18 June.