NVM sells Promanex to Costain for £18.8m

Greg Gille
22 August 2011

Tweet
Facebook
LinkedIn
Google plus
Send to

NVM Private Equity has sold UK-based engineering services company Promanex to trade buyer Costain for ТЃ18.8m.

The total consideration includes net debt worth £2.4m and allows NVM to reap a 1.6x multiple on its overall investment in Promanex. Berkshire-based Costain will now hold 100% of the company's issued share capital.

Promanex will be integrated into Costain's infrastructure division, but the existing management team will continue to run the business.

Costain believes the acquisition will broaden the group's capabilities in ongoing care and maintenance and strengthens its presence in key markets – notably the power, nuclear process, hydrocarbons & chemicals and water sectors.

Previous funding
In 2007, NVM invested £5m to support the secondary buyout of Promanex from Sovereign Capital. The venture investors further provided the company with an additional £3.5m over the course of the investment to finance its development.

Barclays Bank provided debt to support the transaction, which saw NVM secure a 63% stake in the business.

Under NVM's ownership, Promanex has seen its turnover increase from £40m to £56.2m, while its staff has risen to 800 people.

Company
Established in 1996, Promanex provides the industrial sector – in particular power generation and petrochemical businesses – with outsourced facilities management, installation, repair and maintenance services.

Hurley-based Promanex employs 800 people; it posted a £56.2m turnover and £1.8m EBITDA for the year ending September 2010.

People
James Arrowsmith led the deal for NVM. Mark Dixon is CEO of Promanex.

Advisers
Vendor – Deloitte, Darren Boocock, Anthony Robinson (Corporate finance); Eversheds, James Trevis, Theresa-Marie Stodell, Steven Toy (Legal).
Acquirer – Pinsent Masons (Legal); KPMG (Financial due diligence).