Three Hills backs WPI

As is typical of Three Hills' deals, the investment will be structured as a combination of debt and equity, with the GP taking a small stake in the company, while the existing management team led by Steven and Michael Igoe will retain a minority holding.

To finance the transaction, the GP deployed capital from its Three Hills Decalia fund, which held a final close on €200m in July 2016, exceeding its initial €150m target. It is now deployed at more than 50%.

This is the fourth investment made by the fund in the UK, following the £10m investment in Genius Sport Group in October 2015, the £15m investment in Tomorrow London in January 2016, and the acquisition of a minority stake in Sigma in March 2018.

Company
Founded in 1979 and based in Middlewich, WPI consists of two main business units: a civil engineering division, providing groundworks, sewers, drainage and road construction to housing developments, and a surfacing division for homebuilding. According to public documents, the company generated EBIT of £6.5m from a turnover of £34.7m in 2016.

People
WPI Group – Steven Igoe (managing director of WPI Civil Engineering).
Three Hills Capital Partners – Lance Contento (principal); Leks de Boer, Partner (partner).

Advisers
Company – Convex Capital (corporate finance); Freeman Fisher (legal).
Acquirers – Herbert Smith Freehills (legal); Armstrong Consulting Services (commercial due diligence); KPMG (financial due diligence, tax); Grant Thornton (financial due diligence, tax); Beyond Corporate (legal).

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• Topics
• Buyouts
• UK / Ireland
• Industrials
• United Kingdom
• KPMG
• Grant Thornton
• Minority investing