MML Capital exits MineTech

MML achieved a 2.7x overall return on the investment in Exploration Logistics Group, a large part of which it divested a year ago. The overall IRR was 140%.

The sale was coordinated by corporate finance advisory firm Livingstone Partners, which was mandated by MineTech's shareholders to find a strategic partner for the business at the beginning of 2012. The firm said in a statement that Perusa emerged as the strongest candidate among several potential acquirers.

Previous funding
MineTech was part of Exploration Logistics Group, in which MML bought a minority stake at the end of 2010 for $15m. The group merged with Medex Global Solutions to form FrontierMedex in March 2011 – the deal brought the GP's total stake in the business to 40% and its overall invested capital to $21m.

MML sold FrontierMedex to a large US corporate in December 2011 but remained in control of MineTech. The transaction was off-market and the GP said that MineTech was always likely to be a separate exit.

MineTech's performance remained stable during the two-year holding period with a turnover of about $20m. The company had $16m of senior debt arranged by HSBC Bristol as part of the original transaction.

Company
MineTech provides landmine clearance and explosive ordnance disposal services for governments, NGOs and private sector businesses within the oil and gas sector.

The company is headquartered near Gloucester where it was established in 1989. MineTech works in former conflict areas across the developing world where it clears explosive remnants of war, facilitating the redevelopment of land for humanitarian and commercial purposes.

MineTech has so far completed over 300 contracts in 45 countries for customers notably including the UN. The business currently works in Iraq, Afghanistan, Kuwait and South Sudan.

People
Investment director Luke Jones and managing partner Ian Wallis represented MML on the deal.

Advisers
Vendor – Livingstone Partners, Alex John, Phillip McCreanor (Corporate finance); Pinsent Masons (Legal); Jeff Soal & Associates (Legal).
Acquirer – Ernst & Young (Financial due diligence); Faegre Baker Daniels (Legal).

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• Exits
• UK / Ireland
• Support services
• United Kingdom
• MML Capital Partners
• Pinsent Masons
• Ernst & Young