GVA Grimley (United Kingdom) - Nov 2007

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01 November 2007

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LDC has invested £40m for a substantial minority stake in GVA Grimley, a commercial property consultancy. The deal is part of a financial restructuring which involves GVA converting from being a limited liability partnership into a limited company. The restructuring is being undertaken to facilitate GVA Grimley’s continued growth plans, while retaining majority control of the business with the partners. As a result of this transaction, GVA Grimley will have access to external capital to support its growth with large acquisitions. The deal also enables a broader participation among GVA Grimley’s nonequity partners to share in the on-going success of the firm. LDC was introduced to the opportunity in the summer. KPMG ran a reasonably targeted auction process to facilitate the transaction. The funding for GVA Grimley comes ahead of a potential IPO. Royal Bank of Scotland and Barclays provided acquisition finance and working capital facilities to support the deal.

Company

GVA Grimley, which can trace its history back to 1827, is the seventh-largest commercial property consultancy in the UK by revenue. It provides a full range of property-related advice, consultancy and transaction services, through 19 national business units, to a broad range of blue-chip clients (property occupiers, owners, lenders, managers and investors). Services include transaction advisory, planning development and regeneration, rating, building and project management consultancy, investment, management and valuation. GVA Grimley also offers specialist advice in areas such as telecoms, corporate consultancy, education, healthcare, retail, contamination, insolvency, plant and machinery and the automotive and roadside sectors. In the year to 30 April 2007 GVA Grimley generated total revenues of £148m, of which 67% derived from consultancy services and around 50% was generated by the regional offices outside London. GVA Grimley has 12 regional offices across the UK with more than 1,200 staff – of which 70% are fee earners. GVA Grimley is a principal shareholder of GVA Worldwide, an independent partnership of property advisors operating globally.

People

Tim Farazmand and Adrian Willetts led the deal for LDC. Shane Corstophine led the deal for Royal Bank of Scotland and Robbie O’Sullivan led for Barclays.

Advisers

Equity - Deloitte, Carol Hinde (Tax)Equity - Egon Zehnder International, John Petrie (Financial Due Diligence)Equity - KPMG, Alan Kennedy (Financial Due Diligence)Equity - LEK, Jonathan Sparey (Commercial Due Diligence)Equity - Wragge & Co, Andy Stylaniru, Catherine Clarke (Legal)Management - DLA Piper, Chris Rawstron, Mark Beardmore (Legal)Management - KPMG, Steve Halburt (Corporate Finance)Management - KPMG, Narinder Paul (Tax)