Connection reaps 4.1x on TeamSport sale to Duke Street

Financial details of the transaction remain undisclosed, though Duke Street typically invests in companies with enterprise values of £50-250m.

The sale generated a 4.1x multiple for Connection following a four-and-a-half-year holding period, equivalent to an IRR of 35%.

Under Connection's tenure, TeamSport increased its number of tracks from eight to 23, five of which are in London. It expanded both by developing new sites and acquiring existing facilities.

TeamSport has tripled its headcount since Connection's initial investment and increased EBITDA from £1.6m to forecasted £5.6m in the current financial year, according to a statement.

Duke Street is currently making hybrid investments on a deal-by-deal basis with backing from Goldman Sachs Asset Management. Unigestion also took part in the TeamSport deal as the sole institutional co-investor.

The business is planning to continue with its current growth plans and will pursue international expansion opportunities under Duke Street's tenure.

Previous funding
Connection invested £2.8m in the £7.73m management buyout of TeamSport in February 2013, in a deal that provided a succession plan for founder Paul Wrightman.

Company
Founded in 1992 and headquartered in Farnham, Surrey, TeamSport is an operator of indoor go-karting tracks. It has a headcount of 750.

People
Connection Capital – Bernard Dale (private equity managing partner).
Duke Street – Charlie Troup (managing partner); Jason Lawford (partner).
TeamSport Karting – Dominic Gaynor (managing director).

Advisers
Company – GCA Altium (M&A); Gateley (legal).

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• Topics
• Buyouts
• Exits
• UK / Ireland
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• Secondary buyout