Peverel Group ("Peverel" or "the Group"), the leading UK property management services group, announces that it has today been rescued from administration with financial backing from Chamonix Private Equity LLP("Chamonix") and Electra Partners LLP ("Electra Partners") in a £62.0 million transaction that involves a substantial reduction in the borrowings of the business.
Zolfo Cooper was appointed as administrator to the holding companies of Peverel in March 2011 and the operating companies have continued to trade successfully and profitably since then. Chamonix and Electra Partners have now acquired the business and assets of Peverel and all its operating subsidiaries, which includes the management of retirement and other residential properties, retirement property sales, insurance services and one of the leading telecare and telehealth monitoring businesses.
This acquisition and subsequent plans for the Group, including a commitment to on-going investment, will secure more than 4,200 jobs and ensure the continuation of a strong and successful business for all its customers. Following the acquisition, the Group's debt will fall from £125m to £25m.
With the arrival of its new financial partners, Peverel is also delighted to announce the appointment of Janet Entwistle as Chief Executive. Janet, who takes up the position with immediate effect, has held senior roles in services businesses and has a track record of business transformation through focusing on the delivery of industry-leading levels of customer service. Her most recent role was as Managing Director of BT Fleet, which operates from a national network of sites and which she built into one of the UK's leading fleet management companies.
In addition, Peverel is pleased to announce the appointment of Paul Lester CBE as independent Non-Executive Chairman. Paul has a deep background working within British industry, most notably as the Chief Executive of VT Group, which he transformed into a diversified support and business services group. His current roles include non-executive directorships of Invensys, Norland Managed Services, and John Laing Infrastructure and he is a member of the HM Treasury Major Projects Review Group.
Chamonix refers to Chamonix Private Equity LLP and associates advising Chamonix Knight Ltd.
Electra Partners refers to Electra Partners LLP acting on behalf of its clients Electra Private Equity PLC and Electra Partners Club 2007 LP.
Janet Entwistle, Chief Executive of the Peverel Group, said:
"This transaction marks a new beginning for Peverel and I am delighted to have been appointed Chief Executive. I look forward to working with the rest of the management team to ensure we develop this business by delivering on our promises to customers, building trust with all our stakeholders, and operating to the highest standards of business integrity."
Jane Crawford, Managing Partner of Chamonix, said:
"We are delighted to have reached agreement to acquire Peverel and thereby rescue it from administration, significantly reducing its debt in the process. This means Peverel can move forward with a more appropriate capital structure. It now has in Janet Entwistle a new leader, with a great vision. Our commitment is to support her and her management team with on-going investment to deliver the exciting future we all see for this business."
Alex Fortescue, Chief Investment Partner at Electra Partners, said:
"After a year of uncertainty, Peverel now has a bright future. We are putting the business on a stable financial footing from which Janet Entwistle and the existing management team will focus on delivering best-in-class service for all Peverel's customers and building the business over the long-term."
Notes to Editors:
Peverel Group is one of the UK's leading property management services businesses. Starting as a specialist in retirement housing more than 25 years ago, Peverel has grown to embrace functions such as security systems, telecare and telehealth, insurance services and general residential property management. The Group has three divisions - Peverel Retirement, Peverel Property Management and Peverel Building Technologies - along with Kingsborough, an insurance services business. Headquartered in New Milton, Hampshire, Peverel has offices in London, Luton, Birmingham, Kent and Glasgow and employs more than 4,200 people. More than 3,000 of these staff work at the developments managed by the Group. For further information visit www.peverel.co.uk
Chamonix Private Equity is a specialist independent investment firm founded in 2006. It is a partnership between Jane Crawford, Christopher Edge and Andrew Hartley. Chamonix focuses on identifying and acquiring businesses that have the potential to grow - but have been considered non-core or sub-scale by their current owners. The firm's unique investment approach is based on a commitment to invest for the long term, the use of lower levels of leverage than the private equity industry traditionally puts in place, and an equity funding ethos which ensures an appropriate and financial structure for each acquisition. The firm typically focuses on fewer investments, an approach which allows its professionals to spend significant amounts of time supporting its management teams to bring about real change. For further information visit www.chamonixpe.com
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market buyout sector. As at 30 September 2011, the firm had funds under management of over £1.3 billion. The firm's flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners typically seeks to invest in the region of £40 to £100 million of equity, in deals of up to £300 million enterprise value. The firm's major client is Electra Private Equity PLC, a private equity investment trust which has been listed on the London Stock Exchange since 1976. The firm also manages the Electra Partners Club 2007 LP, a fund raised in 2008 for the sole purpose of investing alongside Electra in controlled investment situations. For further information please visit www.electrapartners.com. Electra Partners LLP is authorised and regulated by the Financial Services Authority.