MCH and Corpfin invest in Segur Ibérica

Managed by Rothschild, the sale by quoted evergreen vehicle Dinamia Capital Privado and the Nmás1 Private Equity Fund represents a multiple of 1.24x on N+1's initial investment. Espiga Capital has also sold its stake.

In acquiring N+1's 35.7% stake, existing investors MCH and Corpfin bring their respective shareholdings to 54.5% and 40%. The management team also invested for a 5.5% stake.

MCH invested via its third fund, which held its first closing on €225m in 2008, while Corpfin also invested via its Fund III, which held a final close in June 2006 at €223m.

Corpfin was encouraged to up its stake in Segur due to its status as the third largest firm in the Spanish security sector and the largest independent player. It believes the business has strategic value and will grow significantly once the economic crisis is over. The security services segment as a whole continues to grow and has shown strong resistence and performance throughout the country's financial difficulties.

MCH and Corpfin will pursue a buy-and-build strategy at Segur, taking advantage of opportunities to consolidate the sector. Organic growth is also expected.

The deal is scheduled to close in September, subject to approval by regulators. It follows on from N+1's acquisition of 100% of EYSA only last week.

Previous funding
A consortium of private equity investors comprising N+1, Corpfin and Espiga acquired Segur Ibérica from 3i and MCH for €52.5m in March 2004. At the time, the deal was Spain's largest ever secondary buyout. Corpfin and N+1 co-led the deal and controlled 36.2% each after investing €38m. The rest of the shareholding was divided between MCH (13.3%) and Espiga (11.4%), with the management team holding the remaining 2.9%. The deal was introduced to N+1 and Corpfin by UNICA, while the acquisition debt was structured by Credit Agricole and RBS.

N+1 and Corpfin's stakes were later diluted to 35.7% and 35% respectively following the investment of a member of management.

The private equity backing was designed to enable the company to take full advantage of the opportunities arising in the security sector. N+1 had two seats on the company's board and believes it drove organic growth through the bolt-on acquisition of Grupo EAS by Hortus Mundi in 2006. This is said to have strenghtened the alarms and security system business lines. The Segur group is thought to have weathered the financial crisis well and even increased its margins in 2009.

Previously, in October 1999, 3i and MCH backed the management buyout of Segur Ibérica, investing Pta 3bn in return for respective stakes of 38.2% and 31.8%.

Company
Segur Ibérica and Hortus Mundi make up the Segur Group, a major provider of security services in Spain. The business – which specialises in the installation and management of alarms, security systems and fire protection – reported an EBITDA of €18m on revenues of €220m in 2010, which compares modestly with 2003's EBITDA of €16m on a turnover of €159.3m.

The Madrid-based company was established in May 1978 as a subsidiary of Burns International Security Services and came under Spanish control in 1982. It employs more than 5,000 people and has a presence in all of Spain's provincial capitals.

People
Jaime Hernández, partner, headed MCH's investment. Partners Juan Cuesta and Fernando Trueba and investment director Alvaro Olivares represented Corpfin Capital; Cuesta and Olivares have seats on the board. Ignacio Moreno, co-CEO, and Javier Arana, managing partner, coordinated the exit on behalf of N+1. Espiga was represented by founding partner Carlos Prado. Antonio Mateos is the president of Segur Ibérica.

Advisers
Equity - Rothschild (Corporate finance).
Vendor – Alemany Escalona & Escalante Abogados (Legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Southern Europe
• Buyouts
• Exits
• Support services
• Spain
• Corpfin Capital
• 3i
• MCH Private Equity
• Secondary purchase