ECI-backed Fourth buys Adaco

Funding to support the acquisition was provided by ECI Partners, HSBC and the Fourth management team.

Fourth has been conducting research into the American markets for the past year, and uncovered Adaco during its market mapping and entry research.

The acquisition is in line with ECI's international growth strategy for Fourth. The GP bought the company in March 2011 as part of a management buyout valued at £30-50m. The transaction was completed via ECI's ninth fund, ECI 9, which closed on £437m in 2008.

Company
Founded 27 years ago and based in Connecticut, Adaco provides purchasing and operational control solutions to the hospitality industry. The firm has more than 400 clients in 54 countries and employs 35 members of staff.

Following Fourth's purchase of Adaco, the combined group will have revenues in excess of £23m.

People
ECI director David Ewing worked on the transaction. Sunil Reddy is president of Adaco – he will retain his position and join the Fourth board.

Advisers
Acquirer – White & Case (Legal); Pinsent Masons (Legal); PricewaterhouseCoopers (Commercial due diligence, financial due diligence, tax).
Company – McLean Group (M&A); Blank Rome (Legal).

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• Topics
• UK / Ireland
• Technology
• Expansion
• United Kingdom
• ECI Partners
• HSBC