Develop Training Ltd (United Kingdom) - Dec 2007

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01 December 2007

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Barclays Ventures has backed the £15m management buyout of Develop Training Ltd, a provider of training services to the utility sector. The deal represents an exit for NVM Private Equity. Clearwater Corporate Finance ran a process to facilitate the deal which had a pre-determined price agreed between management and the vendor. HSBC provided a senior debt package of £10m to support Barclays Ventures’ acquisition. Barclays Ventures was attracted to Develop due to its market leading position in a growing space, with the nature of the training it offers meaning the market has high barriers to entry for other players.

Exit deal NVM created Develop Training earlier this year through a de-merger from the Longhirst Group, another NVM portfolio company. NVM first backed the Longhirst Group in 2002 in a £9m buyout deal (27 January 2003, page 28). It subsequently injected additional funding in 2004 before establishing Develop as a free standing company.

Company Headquartered in the Midlands, Develop has training centres in York, Derby, Swindon, Glasgow, Bradford, Warrington and Whitwell, near Oakham. It is a provider of training to the water and gas industry and also serves clients in the rail, electrical, mechanical and building services fields. Many of its courses are obligatory for clients to meet health and safety standards. Clients include National Grid, Anglican Water, the Ministry of Defence, Thames Water, BT and NHS Estates. Develop employs just under 200 staff and had a turnover of approximately £16m in 2007. The company intends to grow by continuing to enhance its core offering in the utility sector and strengthening its offering in the transportation and facilities management sectors.

People Simon Kelsall led the deal for Barclays Ventures. Paul Kirk joins the company’s board as a non-executive director on behalf of Barclays Ventures. Mauro Biagioni managed the exit on behalf of NVM. Cheryl Foreman is chief executive of the business.

Advisers

Debt - Pinsent Masons, (Legal)Equity - AMR International Ltd, (Commercial Due Diligence)Equity - Aon Mergers and Acquisitions Group, (Insurance Due Diligence)Equity - BDO Stoy Hayward , (Financial Due Diligence)Equity - DLA Piper, (Legal)Management - HBJ Gateley Wareing, (Legal)Management - PricewaterhouseCoopers, (Tax)Vendor - Clearwater Corporate Finance, John Hustler, Karen Edwards (Corporate Finance)