NVM invests £11.6m in King Construction

The firm drew equity from its third-generation fund, which closed on £142m in November 2018 and is almost 50% deployed. The fund took a majority stake in the company, with management retaining the balance of the shares. NVM is its first institutional investor.

Unquote understands that the entry multiple for the company was 4-8x EBITDA.

NVM investment director Liam May and investment partner Andy Leach will both take board seats upon completion of the transaction. When the deal is complete, NVM will bring on a new non-executive chairman.

The company intends to expand into new geographies in the future.

ThinCats provided debt for the deal.

Company
Founded in 2002, King Construction provides civil engineering and construction services. The Knowsley-based company employs 220 people across five locations. For the year ending in March 2018, the firm reported a turnover of £24.4m and profit before tax of £494,050.

People
NVM Private Equity – Andy Leach (investment partner); Liam May (investment director); Oliver Wildig (investment manager).
King Construction – Dave Prescott (managing director); Campbell Crawford (chief operating officer); Simon Warner (finance director); Mike Taylor (commercial director).

Advisers
Equity – RSM (financial due diligence, tax); Addleshaw Goddard, Paul Medlicott, George Danczak, James Finney, (legal); Sooner Advisory, Nigel Birkitt (debt advisory); PMSI, Piers Copham (commercial due diligence); Aon, John Donald (insurance due diligence); Continuum, Steve Wycherley (management due diligence).
Company – Glenville Walker & Partners, Denise Walker (legal); Cowgills, Paul Stringer, Sam Davies (legal).
Management – Hill Dickinson, Craig Scott (legal).
Debt – Irwin Mitchell, Dean Gormley (legal).

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• Topics
• Buyouts
• UK / Ireland
• Industrials
• NVM Private Equity
• United Kingdom