Cabot sells KRS to Phoenix, makes 5x

The transaction gives the company an enterprise value of £35m, including £2m in cash held on the balance sheet. The firm's management team also invested as part of the deal.

Phoenix invested via the £450m Phoenix Equity Partners 2010 fund. The GP intends to work with the management team to expand KRS's existing product offering and identify acquisition targets.

Previous funding
Cabot invested in KRS in 2006.

Company
Founded in 1998 and based in Preston, KRS is an independent distributor of equity release loans and annuities for the over-55s. The firm also provides estate planning services, wills and lasting powers of attorney, travel and home insurance and life cover.

In the year to December 31 2012, KRS generated an EBITDA of £5.2m. The company employs 240 members of staff.

People
James Clark is a partner at Cabot. Sandy Muirhead is a managing partner at Phoenix.

Advisers
Equity – Addleshaw Goddard, Neal Shepherd (Legal); Canaccord Genuity, Lawrence Guthrie (Corporate finance); KPMG, Phil Abram (Financial due diligence, tax); Oliver Wyman, Mike Smith (Commercial due diligence).
Management – Travers Smith, Edmund Reed (Legal); Steve Bartlett Corporate Finance (Corporate finance).
Company – Travers Smith, Kathleen Russ (Tax).

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• Topics
• UK / Ireland
• Financials
• Exits
• Buyouts
• United Kingdom
• Phoenix Equity Partners