Anatomy of a deal
FSP MAKES A BID DEAL OF PRIVATE EQUITY . . . AND ADVISER RELATIONSHIPS
Advised by the corporate finance teams from Freeth Cartwright and Cooper Parry, one of the highest profile PE deals to have taken place in the Midlands in recent months is August Equity LLP’s multi-million pound buy and build investment in Funeral Services Partnership Limited [FSP].
Established in 2007, FSP is a market consolidator of funeral care providers and operates nationally. August Equity committed £23m alongside an acquisition facility from HSBC, providing a significant acquisition war chest to fund the next stage of FSP’s growth plans.
According to Freeth Cartwright corporate finance partner Karl Jansen, who led the Freeth Cartwright team with partner Lee Clifford, the deal shaped up well right from the start. “One of FSP’s key selling points to any investor is the fact that the management team has such a thorough knowledge of its sector”, said Mr Jansen.
“The directors are steeped in the funeral business and have longstanding and widespread contacts across the sector, standing them in excellent stead to identify and execute future acquisition opportunities.
“CEO Phillip Greenfield is a former founder and director of funeral service company Fairways, which he grew and subsequently sold. Chairman Graham Hodson is also well known in the industry having founded funeral business Laurels.”
Confidence was an important element of this multi-million pound deal. On the one side, August Equity’s confidence in the FSP proposition and ability to boost their investment was obvious. But equally evident was FSP’s confidence in their advisers to complete the deal to the satisfaction of all parties.
Karl Jansen continued: “I knew one of the FSP directors, Guy Turner, from his time at 3i in Nottingham, particularly through our joint involvement in an MBO which 3i backed in the food sector.
“We kept in touch after he left 3i and he subsequently introduced me to Phillip Greenfield at the time they were putting together the original FSP concept. I recall their presentation to potential funders as being very compelling and I was totally enthused by it.
“As a result, we have been pleased to act on FSP’s behalf to complete the initial equity and debt fundraising plus seven acquisitions to help the organisation achieve the critical mass it has today.
“The relationships have strengthened over time and have been critical to a smooth-running, honest and fair exchange of legal advice and guidance. It has also led to Freeth Cartwright undertaking all the company’s legal work, including employment and property.”
The continued involvement of both Freeth Cartwright and Cooper Parry in this latest deal also demonstrates the credibility of the Midlands adviser base for the private equity sector, a point which is reinforced by FSP’s Guy Turner.
“I know from my time at 3i that the quality of the advisers in the Midlands corporate finance community is as good as anywhere”, he said. “It really makes no odds whether you are a Midlands-based business or, like us, a national operator, the service is excellent. Freeth Cartwright and Cooper Parry really have been a key factor in our success.”
ends - 18 November 2009
For more details contact Karl Jansen
Email: karl.jansen@freethcartwright.co.uk
Tel: 0845 634 9780