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Apr 24, 2024

H.I.G. Capital swoops for property firm

A provider of property and asset refurbishment services has been snapped up by alternative investment firm H.I.G. Capital. Headquartered in Southampton, CLC Group provides refurbishment, electrical,

A provider of property and asset refurbishment services has been snapped up by alternative investment firm H.I.G. Capital.

Headquartered in Southampton, CLC Group provides refurbishment, electrical, and fire protection services to clients in the social housing, local government, defence, hospitality and utilities end-markets.

Operating 15 branches across the UK, the business has enjoyed organic growth across two decades.

CLC's existing management team will remain to drive the company’s development.

Its shareholders appointed FRP Corporate Finance as lead sell-side adviser. The team, which was jointly led by partner Simon Davies and partner Darren Miller, gained significant levels of interest from both potential trade and private equity buyers.

A deal was agreed with H.I.G., after the firm "recognised the group's strong market position and reputation, its track record of profitable growth, and the opportunity for further expansion into new geographical areas and complementary services".

The sale will see H.I.G. gain control from the Armitage Family Trust, which first invested in the firm in 1971. Both the Trust and CLC management will reinvest in the group alongside H.I.G.

Peter Armitage, non-executive chairman of CLC, said: "I had the opportunity to invest in CLC over 42 years ago when I was young and ambitious and prepared to put our house on the line to acquire a 20 per cent stake in what was a relatively small company with a turnover of a few million pounds.

"Over the years since then, my family and I have taken every opportunity, when it became available, to increase that investment in, and commitment to, CLC.

"I have enjoyed every minute of my involvement with CLC, and I am delighted that H.I.G. has come on board to support the group's next phase of growth and help CLC take advantage of the growth opportunities in front of it."

John Harper, managing director of H.I.G. in London, added: "The property refurbishment market is set for significant investment in the coming decade. We are excited to partner with CLC's highly experienced management team to build on their success to date through further service and geographic expansion, as well as add-on acquisitions."

Darren Miller, FRP Corporate Finance partner, said: "Since its foundation in 1969, CLC has established an exceptional reputation for delivering a high-quality and dependable service to its clients, and this has been reflected in almost continuous growth. It has been a privilege advising shareholders and the management team to bring this transaction to a successful completion."

The shareholders and management were provided legal advice by Shoosmiths, led by Stephen Porter, Lisa Sigalet and Kiran Dhesi. Vendor financial due diligence was provided by Nick Williams and Colin Ferguson from RSM. The shareholder's tax advisers were Alan Gasser and Emma Halton from PwC.

H.I.G.'s investment was led by John Harper, Adam Taylor, Elliott Robinson, William Grant, Scott Menzel and Philippe de Limburg Stirum. H.I.G. was advised by Goodwins (legal), Alvarez & Marsal (financial due diligence), OC&C and Hakluyt (commercial due diligence), AON (insurance) and Buck (pensions). Bank debt was provided by Tikehau.

CLC Group has offices in Brandon, Bristol, Camberley, Catterick, Colchester, Gravesend, Leeds, Newcastle, Plymouth, Shepshed, Southampton, Walsall, Warrington and Watford.

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