Buy-and-builds maintain momentum

This issue of unquote" features three acquisition finance deals, supporting the notion that bolt-ons are proving a beacon of hope in today's otherwise gloomy market. The ability to source such deals often off-market combined with their lower-risk profile make them an attractive option nowadays - for both seasoned specialists and hopeful newcomers alike (see feature, page 10).

Duke Street-backed internet telephony company 2e2 Holdings has delisted Netstore, an IT security services company, for £58.1m (page 27). Duke Street acquired 2e2 in 2006 from Gresham Private Equity.

ISIS Equity Partners has supported its portfolio company and vehicle rental specialist Nexus Vehicle Management in the acquisition of FMG Support's vehicle management division (page 30). The division will operate under the Nexus brand. Nexus was acquired in March 2008 via a BIMBO.

Meanwhile, August Equity announced it will embark on a buy-and-build strategy in the domiciliary care sector. For this purpose, it acquired home care provider Enara in a £20m deal and simultaneously bolted-on home care provider First Call Care Services (page 33). The deal was structured without debt. August sold its last healthcare group Healthcare Homes Group, also formed by buy-and-build, in April 2008 to Bowmark Capital for £75m.

These deals support the view expressed in a study by BDO Stoy Hayward in September 2008, which said that 51% of the private equity-backed companies it interviewed expected to make bolt-ons over the next 12 months.

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