Palatine reaps more than 3x on Westleigh sale to Countryside

The transaction represents a return of more than 3x for Palatine after a holding period of less than two years, equivalent to an IRR of 90%.

The total sum payable by the buyer includes up to £23.5m deferred for two years, a proportion of which is subject to performance.

Under the GP's tenure, Westleigh has expanded its geographic remit, from an initial focus on the East Midlands into the West Midlands and South Yorkshire.

It has increased its EBITDA from £9m in the year ending in March 2016 to £16m in the year ending in March 2018, according to a statement. The company has also increased its headcount from around 300 to 450.

Previous funding
Palatine invested £21m in Westleigh in exchange for a significant minority stake in July 2016. The deal valued the business at £65m and was the first investment led by the GP's Midlands office.

Company
Founded in 1985 and headquartered in Whetstone, Leicestershire, Westleigh is a builder of affordable homes to government-registered providers. The company generated a turnover of £150.6m in the year ending in March 2018, according to a stock exchange announcement issued by the buyer.

People
Palatine Private Equity – Gary Tipper (managing partner); Richard Thomas (investment director); James Painter (investment manager).
Westleigh Partnerships – Chris Beighton (chairperson); Ian Jones (managing director).
Countryside Properties – Ian Sutcliffe (CEO).

Advisers
Vendor – Clearwater International, Phil Burns, Rob Burden (corporate finance); Gateley, Simon Gill, Beth Mather (legal).

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• Topics
• Exits
• UK / Ireland
• Industrials
• United Kingdom
• Palatine Private Equity
• Trade sale
• Clearwater
• Gateley