Carlyle buys PA Consulting in $1bn deal

The deal is expected to go through by December 2015, pending approval by the regulator and PA's shareholders.

Under the GP's tenure, the company will look to further pursue the internationalisation strategy it has followed across Europe, America and the Middle East for the past few years. In addition, the business is contemplating the purchase of smaller players within the consultancy sector.

PA's employee shareholding scheme will remain in place after the takeover.

The purchase was financed via Carlyle Europe Partners IV (CEP IV). Launched with a €3bn target in January 2013, the vehicle hit its €3.75bn hard-cap when fundraising concluded in July 2015, according to unquote" data.

CEP IV, targeting buyouts in the upper-mid-market space, had backed four European companies as of 1 September 2015. These include Italian elevator manufacturer Sematic, acquired in January; and northern-Spain-based food business Palacios Alimentación.

Company
Founded in 1943, PA is an employee-owned consultancy advising on marketing, customer strategy, technology and IT matters, among others. Headquartered in London, the firm works out of additional offices in Germany, Ireland, the Netherlands, Spain, Switzerland, the Nordic countrires, the US, the Middle East, Mexico, India, Singapore and New Zealand.

Having hired 446 consultants in 2014, the company currently employs more than 2,500 professionals and posted £423m in sales in the same year, with a £53.3m operating profit.

People
Carlyle's work on the deal was led by Eric Kump and Alex Stirling, respectively managing director and director at the GP's Europe-focused investment team. Alan Middleton is CEO of PA, while Marcus Agius is non-executive chair of the business.

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