Bregal and Motion exit MUS to First Reserve

Kenny Wastell
25 July 2016

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Bregal Capital and Motion Equity Partners have sold their stake in UK utility service provider Morrison Utility Services (MUS) to US-based GP First Reserve.

First Reserve's capital for the transaction was drawn from First Reserve XIII, a 2012-vintage vehicle that held its final close in October 2014 on $3.4bn.

The value of the transaction is undisclosed, though First Reserve invests in deals worth $100-500m.

Debt
HSBC and Societe Generale have fully underwritten a debt package to support the transaction.

Previous funding
Motion and Bregal (at the time known as Cognetas and Englefield Capital respectively) acquired MUS from Anglican Water Group in 2008 for £135m.

Company
Headquartered in Stevenage and founded in 1884, MUS is a utilities service provider. It installs, manages and maintains infrastructure including electricity, gas, water and telecommunications networks.The business has a headcount of around 4,000, up from 3,300 at the time of Bregal's and Motion's initial investment.

MUS generates revenues of around £600m.

People
Bregal Capital – Edmund Lazarus (managing partner).
Motion Equity Partners – Patrick Eisenchteter (managing partner).
First Reserve – Alex Krueger (co-CEO, president); Jeff Quake, Neil Hartley (managing directors).
Morrison Utility Services – Charles Morrison (CEO).

Advisers
Equity – Winchester Capital (corporate finance); Freshfields (legal).
Company – DC Advisory (corporate finance); Marlborough Partners (corporate finance); Kaye Scholer (legal).
Management – Wyvern Partners (corporate finance); Pinsent Masons (legal).