Penta consortium buys Daisy

The consortium made a tentative bid for Daisy in mid-August with a cash offer of 190 pence per share. Last week, the consortium revised its offer to 185 pence per share, which gives Daisy a market cap of £494m. The offer was then accepted this week.

The final offer price represents a premium of 5.7% to the closing price of Daisy's shares on 12 August, the day before the company announced it had been approached with a take-private offer.

The three parties have acquired the business through the newly created holding company Chain Bidco.

Debt
A £265m senior debt and revolving credit facility has been provided for the take-private by HSBC, ING Bank and Lloyds. Furthermore, Ares Management has provided a £135m PIK facility.

Company
Founded in 2001 and headquartered in Nelson, Lancashire, Daisy is a provider of business broadband, voice-over-internet protocol, phone lines, mobiles services, and cloud and hosting systems. It listed on the AIM of the London Stock Exchange in July 2009.

The company has three divisions: Daisy Wholesale, Daisy Distribution and Daisy Retail. It employs 1,500 staff.

Daisy generated £352.7m in revenues for the year ending March 2014, with an adjusted EBITDA of £57.9m. Net bank debt as of March 2014 stood at £111.3m.

People
Matthew Riley is the CEO of Daisy.

Advisers
Equity – Clifford Chance (Legal).
Company – Oakley Capital Corporate Finance (Corporate finance).
Mezzanine – Weil Gotshal & Manges, Mark Donald, Tom Richards, Alastair Cole, Patrick Bright, Meghan Stanton, Lewis Blakey, Frixos Hatjantonas (Legal).
Debt – Allen & Overy (Legal).

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• Topics
• Buyouts
• UK / Ireland
• Technology
• United Kingdom
• Penta Capital Partners
• Take Private