ECI reaps 3x on sale of Rhubarb to Livingbridge

Financial details of the transaction are undisclosed, though sources close to the transaction told unquote" the deal gives Rhubarb an enterprise value in the region of £70-75m.

It is also understood that, in addition to acquiring ECI's minority stake, Livingbridge has also acquired additional shares from the management team, giving the GP a majority stake in Rhubarb.

The deal marks the maiden investment from Livingbridge's sixth fund, which held a final close on £660m in September 2016.

ECI was invested in Rhubarb via its ninth fund, which held its first and final close on £430m in December 2008 after three months on the road. The exit is the seventh made by the vehicle and brings the fund's current overall return to 4.4x.

Under its new ownership structure, Rhubarb will look to double in size over the next four years, according to a joint statement issued by ECI and Livingbridge. The business has also appointed Richard Prosser, currently chairperson at 3i-backed Audley Travel and ECI-backed Tuskerdirect, as its chair.

Since ECI's initial investment, Rhubarb has grown by securing contracts to provide catering in a number of high-footfall locations, including Centrepoint, the Royal Albert Hall and the 'Walkie Talkie' building, 20 Fenchurch Street. The vendor said in a statement the firm has more than doubled its revenues during the holding period, which unquote" reported to be £32m in 2012.

The transaction marks the fourth exit for ECI in 2016. It follows the sale of compliance business Citation to HgCapital in February; the partial exit from Kelvin Hughes Group via the sale of digital navigation division ChartCo to Equistone in June; and the sale of corporate travel business Reed & Mackay to Inflexion Private Equity in August.

Debt
European Capital and HSBC provided a debt package to support the transaction.

Previous funding
ECI backed the MBO of Rhubarb in October 2012, investing £12m in exchange for a minority stake.

Company
Founded in 1996 and based in London, Rhubarb is a luxury catering and events company. The business has contracts in galleries, high-profile buildings across London, sporting venues, airports and train stations.

Rhubarb has a headcount of 248 full-time employees, with a further 900 people employed on temporary contracts.

People
Livingbridge – Benoit Broch (director).
ECI Partners – Paul McCreadie (partner).
Rhubarb – Pieter-Bas Jacobse (CEO).

Advisers
Equity – Houlihan Lokey (corporate finance); Eversheds (legal); Parthenon (commercial due diligence).
Vendor – Lincoln International (corporate finance); PwC (commercial due diligence); KPMG (financial due diligence); Burges Salmon (legal).
Management – Liberty Corporate Finance (corporate finance); Ropes & Gray (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Buyouts
• UK / Ireland
• Consumer
• United Kingdom
• Living Bridge
• ECI Partners