Transmission & Distribution Group (United Kingdom) - Jan 2008

unquote
01 January 2008

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HSBC Private Equity has backed the management buyout of industrial services business Transmission & Distribution Group (TDG) for an enterprise value believed to be between £15-20m. HSBC provided a combined debt and equity package to support the deal. The deal represented an exit for PrimeEnergy Partners Ltd, Singapore. HSBC Private Equity originated the deal off market as TDG was an HSBC banking customer. HSBC Private Equity sees TDG as a platform for a buy-and-build strategy and also believes it has good prospects for organic growth as it is a leader in a niche market. HSBC Private Equity owns a significant minority stake in TDG.

Company

TDG provides condition monitoring systems for electrical utilities and heavy industry. TDG is the parent company of Diagnostic Monitoring Systems (DMS), a Glasgow-based provider of partial discharge monitoring services focusing on gas insulated switchgear and transformers. DMS applications monitor electrical transmission and distribution networks, providing early warning of fault and breakdown. DMS was founded as a spin-out from the University of Strathclyde in 1994. TDG is a global business, with offices in the UK, Sweden, the United Arab Emirates, Australia and China. It employs approximately 40 staff.

People

Mahmoud Atalla led the deal for HSBC Private Equity and joins the board of the company. Kurt Hakansson is the CEO of TDG.

Advisers

Equity - AMR, Peter Howson (Commercial Due Diligence)Equity - DLA Piper, Simon Ray (Legal)Equity - Grant Thornton, Ian Calder, Linda Cooke (Financial Due Diligence)Management - Sheperd & Wedderburn, (Legal)Vendor - Latham & Watkins, (Legal)

Sourced from: UK & Ireland unquote" 363 (Feb 2008)