Bowmark sells Leaders Romans to Platinum Equity

Harriet Matthews
25 January 2022

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Bowmark Capital is to sell UK-based property services group Leaders Romans Group (LRG) in an SBO to Platinum Equity.

The Mail on Sunday reported in September 2021 that Bowmark had hired Rothschild for a strategic review of the company, which could lead to a sale process. The report stated that the company posted EBITDA of GBP 35m, citing bankers who pointed to a potential purchase price of GBP 400m-450m.

Bowmark acquired property services company Leaders in March 2010. The business was valued at GBP 48m and the deal saw Bowmark acquire a majority stake. The GP invested via Bowmark Capital Partners IV, which held a final close in January 2008 on GBP 265m.

Bowmark acquired Romans Group in September 2013, also deploying equity for the GBP 50m deal via Bowmark IV, according to Unquote Data. Leaders and Romans Group were merged to form Leaders Romans Group in 2016.

According to Unquote Data, the only remaining asset in Bowmark IV is bar and restaurant group Drake & Morgan, which the GP acquired in 2013.

During Bowmark's investment period, Leaders Romans Group made 132 acquisitions of branches and lettings portfolios, Bowmark said in a statement. It increased its workforce from 900 to 2,500 staff and tripled its revenues to GBP 165m.

Platinum Equity said in a statement that it intends to develop LRG's existing M&A capabilities, as well as to provide operational assistance including in digital transformation.

Platinum is currently deploying equity via Platinum Equity Capital Partners V. The fund held a final close on its USD 10bn hard-cap in January 2020. It typically invests in companies with enterprise values of up to USD 4bn, deploying equity tickets of up to USD 1bn. Platinum generally invests in corporate spin-offs or companies requiring operational improvement, according to Unquote Data.

The GP registered its sixth flagship fund in October 2021 with a USD 12bn target, according to Unquote Data.

Company
Leaders Romans Group provides property services including residential lettings, corporate maintenance, planning, surveys, block management, and residential and corporate sales. It serves landlords, buyers, sellers, property developers and housing associations. The company manages 62,000 properties across 210 branches in the UK.

Headquartered in Wokingham, the company employs 2,500 staff and posts revenues of GBP 165m. Romans Group was founded in 1987, while Leaders was founded in 1983, and the companies were merged in 2016.

People
Leaders Romans Group – Peter Kavanagh (CEO).
Bowmark Capital – Tom Shelford (partner).
Platinum Equity – Louis Samson (partner); Fernando Goni (managing director).

Advisers
Vendor – Rothschild (corporate finance); Stephenson Harwood (legal); Deloitte (tax); CIL (commercial due diligence); PwC (financial due diligence).
Equity – Latham & Watkins (legal); Eversheds Sutherland (legal).