Exponent buys majority stake in H&MV

The deal was structured as a limited process run by Clearwater International, a source close to the situation told Unquote.

Exponent is acquiring its shares from private shareholders and management, according to a statement, although CEO PJ Flanagan and chief operating officer John Stokes will remain significant shareholders in the business and will reinvest alongside the GP.

The GP is deploying equity via Exponent Private Equity Partners IV. The GP generally acquires mid-market businesses in the UK and Ireland, focusing on primary buyouts. It invests in the media, consumer, financial services and business services sectors.

Exponent said in a statement that it intends to support H&MV with its growth in its existing markets and new international markets. The firm also plans to support initiatives including the development of ita design and delivery capabilities, as well as its business development.

The firm's recent investments in Ireland include payments business Fintrax Group (now known as Planet), which the GP sold to Eurazeo in 2015 for EUR 585m and a 4x return). The GP's other Irish investments include UK and Irish horse racing publication Racing Post (now known as Spotlight Sports Group), as well as waste management, recycling and resource recovery business Enva.

Exponent's investment in H&MV comes shortly after the GP announced its investment in professional services group Xeinadin. The GP's other recent activity includes its GBP 300m trade sale of publishing company Dennis in August 2021, which saw the GP make returns of 3x money and 40% IRR.

Company
Founded in 1997 and headquartered in Limerick, H&MV provides high voltage (HV) engineering services for three core markets: data centres, renewables and utility. The services it provides include training, plant asset management and independent connections provision. H&MV generates repeat business and has a contracted project pipeline, according to a statement. The firm has more than 400 maintenance contracts and 18 international branches, according to its website.

People
H&MV – PJ Flanagan (CEO); John Stokes (chief operating officer).
Exponent Private Equity – Tim Easingwood, John Moore (partners).

Advisers
Equity – Macfarlanes (legal); A&L Goodbody (legal); KPMG (financial due diligence).
Vendor – Holmes (legal); Clearwater International (M&A); EY (financial due diligence).

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