Palatine supports MBO of Lucion Services

Kenny Wastell
23 May 2019

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Palatine Private Equity has supported the management buyout of UK-headquartered testing, inspection and certification business Lucion Services.

Financial details of the transaction remain undisclosed, though Palatine drew capital from its third flagship fund to support the deal. The vehicle closed on £220m in 2015 and typically writes equity cheques of £10-30m.

The company will pursue an acquisitive growth strategy under its new ownership model, having previously acquired AOH in 2011 and Redhills in 2016.

The deal will see Lucion's founding shareholders exit the business, with CEO Phil Rozier, chief risk officer Ross Boulton and chief operations officer Adam Mead leading the group.

Palatine has also introduced Jamie McGivern – who was previously a financial director at the GP's portfolio company Chase Templeton – as chief financial officer at Lucion. Palatine investment directors Kieran Lawton and James Winterbottom will also take seats on the board as non-executive directors.

HSBC provided a debt package to support the deal.

Company
Founded in 2003 and headquartered in Gateshead, Lucion is a testing, inspection and certification company focusing on hazardous materials, with particular expertise in the asbestos compliance market. It has public and private clients across the retail, housing and marine sectors. The company has additional offices across the UK and has a total headcount of around 300.

People
Palatine Private Equity – Gary Tipper (managing partner); Ed Fazakerley (partner); Kieran Lawton, James Winterbottom (investment directors).
Lucion Services – Phil Rozier (CEO).

Advisers
Equity – Gateley, Rebecca Grisewood, Kate Richards, Richard Sealy, Chris Lister (legal); Grant Thornton, Richard Goldsack, Matt Bryden-Smith, Jacob Leone, Cariad Mudford (corporate finance); RSM Global, Colin Smyth, Tim Douglas (tax); BDO, Matt Copley, Jeff Gardner (financial due diligence); The Quinn Partnership, Mike Stiles, Paul Quinn (management due diligence); Napthens, Jenny Heyes (management due diligence); Digital Pathfinders, Neil McGowan (IT due diligence); Locktons, Kevin Stout (insurance due diligence); The Agenci, Gary Hibberd (IT due diligence).
Vendor – Park Place Corporate Finance, Tim Simpson, Ian Hale, James Croxen (corporate finance); Watson Burton, Duncan Reid (legal).
Debt – DLA Piper, Ann Robson (legal).