V.Group sponsor Advent explores strategic options, appoints Goldman Sachs and Jefferies

The sponsor has hired Goldman Sachs to conduct the review of the marine servicing company, three of the sources said, two adding that Jefferies is also mandated.

V.Group has been under Advent’s ownership since 2017 and it is normal for a financial investor to review strategic options for businesses on an on-going basis, one source said.

The business, which provides ship-management services in addition to technical, staff-management and commercial services, generates around USD 100m EBITDA, two sources said.

The sellside is holding informal bilateral discussions with a small group of potential investors in case Advent should consider a sale, one source said. CVC and a few trade players are among several parties circling around the asset, another said.

In its 2021 financial year, V.Group’s revenue increased by 11% to USD 601.6m, while EBITDA before separately disclosed items increased by 28% to USD 65.9m, according to Companies House filings.

The improved results reflect higher revenues across all segments driven by an increase in average vessels under management. The increase in revenue was also reflective of the global recovery from COVID-19, leading to higher volumes within marine services, according to the report, filed last October.

Advent acquired V.Group from OMERS Private Equity six years ago when the business was generating around USD 90m-USD 95m annual EBITDA, as reported. Its valuation was expected to reach 11-14x EBITDA then.

Advent, CVC, V.Group and Jefferies declined to comment. Goldman Sachs did not respond to requests for comment.

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