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Equistone buys FirstPort from PE-backed Knight Square

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Equistone Partners Europe has agreed to acquire UK-based property management company FirstPort from Epiris and Chamonix Private Equity portfolio company Knight Square.

FirstPort's management team will retain a minority stake in the business following the deal, while Epiris will retain its stake in Knight Square's other division, Appello, a provider of digital services related to residential care. Epiris said in a statement that it will continue to support Appello's acquisitive growth strategy.

Unquote understands that FirstPort generates a turnover of around £55m. According to a report by Unquote sister publication Mergermarket in December 2018, the vendors were accepting indicative offers for Knight Square in its entirety and were marketing the group based on EBITDA of £12m.

The transaction comes seven years after the vendors acquired Knight Square. The group has since been divided into two separate divisions and made three bolt-on acquisitions. It has also undergone further restructuring with the aim of improving operational efficiency and the quality of its customer service.

Under its new owners, FirstPort will pursue bolt-on acquisitions, invest in digital transformation and focus on developing its range of services.

Following the termination of Epiris's contract as investment portfolio manager of Electra Private Equity in 2017, Electra sold the direct stake it held in Knight Square to Lexington Partners as part of a wind-down of its portfolio of assets.

The latest transaction is subject to regulatory approval and is scheduled to complete by the end of Q3 2019.

Previous funding
Epiris and Chamonix acquired Knight Square out of administration in 2012.

Company
Headquartered in New Milton, Hampshire, Firstport is a residential property management company that works with developers, investors, freeholders and resident management companies. The business provides services to residents and leaseholders of 200,000 properties across 4,000 developments. It has a headcount of 3,000.

People
Equistone Partners Europe – Tim Swales (partner); Seb Leusch (investment director); Isabella Boman-Flavell (investment manager).
Epiris – Alex Cooper-Evans (partner); Alex Fortescue (managing partner).
FirstPort – Nigel Howell (CEO).

Advisers
Vendor – DC Advisory (corporate finance); Macfarlanes (legal); PwC (tax).
Acquirer – Deloitte (corporate finance, financial due diligence); Travers Smith (legal).

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