ICG nears completion of £440m CPA MBO

The sale of the Jersey-based company has been structured as a scheme of arrangement in a Jersey court. More than 90% of the business' 300-strong shareholder base are understood to have approved the transaction last week, but the deal is still awaiting approval from the Royal Court of Jersey due Thursday.

If the deal goes through, shareholders will be receive a cash payment of £260m, and will retain a 31% stake in the company. ICG is expected to take a 47% share, with management, led by Peter Sewell, holding the balance. The transaction also includes a provision in which a co-investor can purchase a further 9% from the 300 shareholders.

The deal is said to be financed with £175m of senior and mezzanine loans, along with a £50m revolving credit facility, to be provided by Lloyds, HSBC, Bank of Ireland, Calyon, Bank of Scotland, Ares Capital Europe and ICG.

CPA employs 1,600 people. The company generated £150m of revenues last year and £45m EBITDA.

ICG just recently sold healthcare company Marken to Apax in a £975m deal, giving the lender its largest ever capital gain of £68m.

BDO is advising CPA, while Close Brothers is providing services to ICG.

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