Inflexion-backed Phenna Group preps sale in Houlihan Lokey-led process

Houlihan Lokey is mandated for the auction for the UK-based testing, inspection, certification and compliance (TICC) business, three of the sources said. The company is expected to be marketed off GBP 60m EBITDA, two of the sources said.

Sponsors are circling the asset, attracted to its underlying resilience, two of the sources said. The vendor is already engaged in conversations with selected parties, one of the sources said, with another adding that a process could launch in September.

The rapid growth story however triggers question marks around how integrated the platform really is, one of the sources cautioned.

Inflexion acquired a minority stake in Phenna Group in November 2020 through its Partnership Capital II fund, following the company's MBO, with debt provided by CVC Credit Partners, in April 2019.

Phenna has since engaged in significant buy-and-build, with deals including the acquisition of A-Star Group in February this year, the acquisition of James Fisher Testing Services from James Fisher and Sons in November 2021, the acquisition of Facit Testing in February 2021 and the acquisition of three divisions from Bolton NDT & Inspection in January 2021.

In 2020, Phenna also acquired Approval Specialists Group, Build Check Group, Code a Weld Group, Starpoint Group, ASM Group, GSTL Group, Elmhurst Energy and Corporate Access Group among others, according to a Companies House filing.

Phenna Group comprises a range of TICC businesses spanning industrial manufacturing, built environments, construction, property, chemicals and pharmaceuticals, with numerous subsidiaries operating under the Phenna Group umbrella, according to its website.

Phenna Group, Inflexion and Houlihan Lokey declined to comment.

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• Topics
• Exits
• UK / Ireland
• Support services
• Industrials
• Mergermarket
• Inflexion Private Equity
• Houlihan Lokey