Connection backs £10.2m ACT Clean MBO

Kenny Wastell
14 February 2017

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Connection Capital has backed the ТЃ10.2m management buyout of UK cleaning business Associated Continuity Teams (ACT Clean).

The GP has provided £5m to support the buyout of the company, which provides outsourced cleaning and kitchen portering services for the hospitality sector.

Under its new ownership structure, the business will look to capitalise on the growing London five-star hotel market, which is expected to grow by 22% between 2015-2018, the GP claimed in a statement.

Connection has been active in recent months, investing £4.6m of growth capital in key-cutting machine manufacturer IconX in December 2016 and £5.4m in the management buyout of metal pressing company Clamason Industries in January 2016.

Company
Founded in 2006, London-headquartered ACT Clean provides cleaning and kitchen portering services to restaurants, hotels, private members' clubs and private hospitals. Its clients include Claridges, the Ritz, the Savoy and the royal household. The business generated operating profits before interest and tax of £265,000 in the year ending May 2015, according to publicly available documents, down from £865,000 the previous year.

People
Connection Capital – Claire Madden (managing partner); Miles Otway (partner).
Associated Continuity Teams – John Stevenson (CEO).

Advisers
Equity – Gateley (legal); BDO (financial due diligence); Latitude Partners (commercial due diligence); Avalon Management Consulting (management due diligence); Global Counsel (political due diligence); Vista Insurance Brokers (insurance due diligence).
Vendor – EMW Law (legal); Cavendish Corporate Finance (corporate finance).