Epiris acquires Inchcape Shipping Services in SBO

Wahida Ahmed
04 April 2022

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UK-based private equity firm Epiris has acquired London-based maritime services provider Inchcape Shipping Services (ISS) in a transaction that marks the 10th investment made from Fund II.

The sponsor will support the company's M&A and operational strategies, as well as build on its digital platform and core port agency business, according to a press release.

Electra, now known as Epiris, acquired a controlling stake in ISS in February 1999, after Inchcape deemed the business to be non-core. It was sold for a consideration of GBP 47.5m, according to Unquote Data. Epiris established itself as an independent entity from Electra in 2016.

Electra sold the business in January 2006 to UAE-based investment firm Istithmar PJSC for GBP 166m, according to Unquote Data.

Today's deal sees the owner exit the investment through a secondary buyout (SBO) following a competitive auction process, according to a statement by ISS.

Epiris Fund II closed in October 2018 on GBP 821m. The vehicle will seek to acquire controlling positions in the range of GBP 40m-GBP 150m in companies based in the UK with an enterprise value around GBP 75m-GBP 500m and co-investment opportunities between GBP 30m and GBP 100m, according to Unquote Data. Other exits from the vehicle include UK-based magazine publisher TI Media, which was sold to Future plc for GBP 140m in April 2020, generating a return of 2.1x MOIC and 44% IRR, according to a press release.

Company
ISS was founded in 1847 in India and is now headquartered in London, UK. The company provides maritime services to port agency management, charterers, ship owners and operators. It also provides spare parts, products, and services required by vessels during a port call; its port agency division is present in more than 85% of the world's ports.

ISS has 240 offices across 60 countries and employs more than 2,700 staff.

People
ISS - Frank Olsen (CEO).
Epiris - Charles Elkington (partner), Alex Fortescue (managing partner).

Advisers
Equity - Latham & Watkins (legal); PwC (financial due diligence); Zeus Capital (corporate finance).