Warburg Pincus to buy Supplier Assessment Services for £160m

Kenny Wastell
19 June 2018

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Warburg Pincus has agreed to acquire Supplier Assessment Services, a UK-based provider of compliance services, from trade vendor Capita for ТЃ160m.

The deal comprises a portfolio of products and services that include the Constructionline and Acclaim brands.

Under its new ownership structure, Supplier Assessment Services will look to make bolt-on acquisitions and expand its range of products and services into new market verticals in the third-party risk management sector.

Warburg Pincus is currently investing from its $12bn Warburg Pincus Private Equity XII fund, which held a final close in 2015 and focuses on the energy, financial services, healthcare, consumer, business services and TMT sectors.

The vendor's decision to sell Supplier Assessment Services forms part of its strategy of divesting £300m of non-core assets by the end of 2018, with the intention of reducing its debt.

The transaction is scheduled to complete in July 2018.

Company
Supplier Assessment Services is a provider of compliance services related to safety and supply-chain risk management in the construction, facilities management, education and utilities industries. It acquired the Constructiononline brand – founded in 1998 – in 2015, prior to which the division operated on a concession basis.

According to a statement issued by the vendor, Supplier Assessment Services generated underlying revenues of £14m and an operating profit of £6m in 2017.

Capita was founded in 1984 and is headquartered in London.

People
Warburg Pincus – Adarsh Sarma, David Reis (managing directors).
Supplier Assessment Services – John Edmunds (CEO).

Advisers
Vendor – Goldman Sachs (corporate finance).