Healthy multiple on behalf of client funds
Maven exits MSIS in latest high-growth firm sale
The deal represents a 3.5 times return on the c.£5.5m invested on behalf of the private equity firm’s client funds and is the latest sale of a high-growth energy business by its Aberdeen team.
Others include EFC Group which was sold in December last year on a multiple of 3.8.
Glasgow-based Maven first invested in MSIS in 2007 when it provided about a third of the financing for a £6.1m buy-in management buyout (bimbo).
It topped that up in the following years with a further £3.35m to support the firm’s growth. Since launch, revenues have more than doubled while profitability has increased threefold.
MSIS, launched in 1998, now employs 80 staff in specialist cleaning and waste management. It has invested heavily in equipment and facilities at its bases in Invergordon and Aberdeen over the last two years. It has also begun focusing on specialised work in the sector, leading to record profits last year.
Jock Gardiner, partner at Maven, said: “Maven has formed an excellent partnership with MSIS’ chief executive Chris Lloyd and his team following the acquisition.
“It is hugely satisfying to have worked with the business and in particular developed its oilfield service capability both in the North Sea and globally in recent years. This investment has delivered a highly profitable return for Maven clients and supports our long-term investment approach in this sector.”
Mr Lloyd said: “The MSIS management team looks forward to the next phase of our development and we would not have secured the platform that our business represents without the support of Maven over the last few years.
“The oil and gas industry is a cyclical but rewarding sector and having the experience, advice and support of the Aberdeen-based Maven energy services team has been critical to MSIS’ development and success.”
Photo: Ian McPherson (Operations Director) and Chris Lloyd (CEO)