The management team headed by incoming Chief Executive Mark Bowler has been backed by Aberdeen Asset Managers Growth Capital (“AAMGC”), the private equity division of Aberdeen Asset Managers Limited.
Senior debt and working capital facilities were provided by HSBC’s Corporate Banking Centre in Sheffield. HSBC’s funding was led by David Hunt from the South Yorkshire Corporate Banking Centre and Phil Hawker from the Northern Leveraged Finance team. Mr Hunt commented on the transaction: “The ongoing increase in personal borrowings has led to ever-increasing demand for the services provided by Chiltern.
The company has a high quality management team with a range of skills and experience, which will undoubtedly be able to continue to develop and expand the business.” Aberdeen Asset provided equity funding for the deal. Paul Newton, who led the Aberdeen Asset team, commented: “This sector is very fast moving with various legislative initiatives underway. We were keen to invest in the sector and feel we have a quality asset in Chiltern UK.”
Ingram Forrest Corporate Finance originated the deal and acted as lead adviser to the management team. The Ingram Forrest Corporate Finance team was led by partner David Forrest . Commenting on the deal, Mr Forrest said: “The Chiltern business itself has a first-class reputation and the exceptional sector expertise of the management team puts them in an excellent position to develop the business significantly.”
Commercial due diligence for the transaction was carried out by Market and Business Development Ltd. Terry Leggett of MBD Ltd said: “This is a fast expanding market, and the company has established itself as one of the major operators as well as having a reputation for strong ethics and controlled growth.”
MKonsult carried out a comprehensive review of the management team as part of the due diligence exercise. Mark Kennedy of MKonsult commented: “This was a particularly interesting project for us. The company, although well run, had essentially been marking time. The business plan post deal represented a dramatic change for the company in terms of size and activity but the management team has the capability and capacity to drive it forward.”
Tax due diligence was completed by Barber Harrison & Platt. David Charlton, who led the team from BHP, commented: “The acquisition allowed Mark Bowler and Mike Jessop to acquire, together with key members of the existing management team, a business with a good track record, but which had clearpotential for improvement and growth, in what is perceived as a growing, and very competitive market.”
hlw Commercial Lawyers acted on behalf of HSBC Bank plc in connection with its loan of senior debt facilities to Chiltern UK. The work was done by Roger Dyson and James Bullock of hlw and involved drafting and negotiating the facility agreements together with the Inter Creditor arrangements to be put in place between HSBC and the venture capital funders.
Grant Thornton provided financial due diligence services. A systems review for the deal was carried out by Amethyst.
Gordons acted for the incoming management.
