Palatine buys EPI Group

Greg Gille
10 June 2014

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Palatine Private Equity has backed the management buyout of seismic consultancy business EPI Group.

The deal marks the sixth investment from Palatine's second fund, which reached a final close on £150m in June 2013. The vehicle makes equity investments of around £10-25m in regional lower mid-market deals.

RBS provided debt to finance the transaction.

According to Palatine, EPI will look to achieve further geographical expansion and to offer a wider range of services following the management buyout. The company also plans to execute a buy-and-build strategy to boost its growth.

Palatine announced last week it would team up with management consultancy The Berkeley Partnership to strengthen its operational improvement offering; the two firms will work together throughout the life cycle of Palatine's investments, both pre- and post-deal.

Company
Headquartered in Surrey, EPI provides seismic consultancy services to the energy industry. Its clients include BP, Shell, ExxonMobil, Statoil and Total.

The group posted a £24m turnover in the last financial year, up from £9m in 2009.

People
Palatine founding partner Tony Dickin led the transaction and has joined the EPI board alongside Steve Donaldson, Palatine's head of portfolio.

The GP also brought Ian Langley, whom it had backed as chairman of Air Energi, onto the company's board.

Advisers
Equity – Deloitte, Jodi Birkett, Matt McKinlay (Financial due diligence); David O'Leary, Simone Wilson (Tax); Calash (Commercial due diligence); The Quinn Partnership (Management due diligence); Gateley (Legal); HMT, Ian Barton (Corporate finance).