Gimv acquires Verkley from PHM Investments

Verkley's management will reinvest as part of the deal.

Unquote sister publication Mergermarket reported earlier in March 2021 that KMPG had been mandated to sell Verkley based on an EBITDA figure of more than €5m. Its high level of recurring revenues, as well as the trends towards the digitalisation of infrastructure and the move towards sustainable heating, were expected to make the company an appealing candidate for sponsors, sources told Mergermarket.

Gimv invests in mid-market companies with enterprise values of up to €250m, making equity investments of €5-50m. The firm focuses on France, Benelux and DACH, and has a sector focus of four areas: sustainable cities; smart industries; health and care; and connected consumer. The GP generally uses leverage of 3x per investment across its portfolio, according to its latest financial statements.

Asked about the rationale behind the investment, a spokesperson for Gimv told Unquote: "Verkley is part of our sustainable cities focus and we see the company as an enabler of the sustainable energy transition in the Netherlands."

Gimv said in a statement that it intends to support the next stage of the company's growth, which will include the development of its services and technologies; in particular, the company intends to develop its capabilities in horizontal soil drilling.

PMH acquired Verkley from the Verkley family in 2012 in a turnaround deal and subsequently completed a restructuring for the business. The company acquired market peer Roggen in 2015.

Company
Verkley provides design and installation services for underground cables and pipelines used for electricity, gas and water. The business was founded in 1964 and headquartered in Drachten, with an additional office in Groningen.

Verkley generated revenues of €38m in 2020 and has 150 full-time employees, as well as 150 further flexible employees.

People
Gimv – Rombout Poos (partner); Roland Veldhuijzen Van Zanten (principal); Erik Mampaey (managing partner, head of sustainable cities).
Verkley – Erik Blauw (CEO).
PMH Investments – Durk van der Meer (managing director).

Advisers
Vendor – KPMG (corporate finance, financial due diligence, commercial due diligence); Corp (legal).
Equity – EY (financial due diligence, commercial due diligence); JSA (tax); DeBreij (legal).

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• Topics
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• Secondary buyout