NVM backs £7m Presteigne MBO from Avesco
NVM Private Equity has backed the £7m management buyout of Presteigne Broadcast Hire, a UK rental provider of broadcast equipment, from parent group Avesco.
The GP provided an equity cheque worth in the region of £5m, unquote" understands.
The deal was supported by an existing NVM LP and follows recent rule changes blocking VCT fund managers from taking ownership stakes or investing in companies over a certain age.
Under NVM's tenure Presteigne will look to expand via an international growth strategy. The business will primarily target UK acquisitions but will not rule out international bolt-ons.
The company is looking to capitalise on the increased consumer demand for live sport broadcasting, with a particular focus on the emergence of internet television and 4K video technology.
The GP anticipates a trade buyer would present the most likely exit route for the asset, as it predicts consolidation at multiple levels within the sector.
Debt
An asset-backed debt package of £2.5m was provided in support of the deal, it is understood.
Company
Founded in 1992, Crawley-headquartered Presteigne hires outdoor broadcast equipment, predominantly for use in sport and live events. It recently supplied equipment used to broadcast events including the 2016 Rio Olympics and the Formula One motor racing circuit. The business has additional facilities in Warrington.
According to publicly available records, Presteigne generated a turnover of £7.75m in the year ending September 2015, with an operating loss of £1.89m.
People
NVM Private Equity – David Rolfe, Peter Hodson (partners).
Presteigne Broadcast Hire – Mike Ransome (CEO).
Advisers
Equity – Osborne Clarke, Jeff Chang, Mike Freer, Hugh Jones, Rebecca Scott (legal); BDO, Andy Harris, Steve Holmes, Max Whitehead (financial due diligence); RPL Advisory, Geoff Rampton, Roger Penney (commercial due diligence); Continuum, Steve Wycherley (management due diligence); Hickman Shearer, Tim Chapman (technology due diligence); Aon, John Donald, Gordon Shaw (insurance due diligence); Brebners Corporate Finance, Jeremy Rayment (corporate finance).
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