3i Group will acquire a 55 percent stake in management consultancy business JMJ Associates in a deal valued at $175 million. The firm will invest from its balance sheet and from co-investment funds managed by 3i.
JMJ focuses on workplace safety and organisational team performance for multinational companies primarily in the energy, mining and construction industries. During the past three years, JMJ has grown revenues at a compound annual growth rate of 41 percent and earnings before interest, tax, depreciation and amortisation revenues at a compound annual growth rate of 86 percent, according to a statement. The Austin, Texas-headquartered company has offices in London, Houston, Doha, Johannesburg, Perth, Brisbane, Busan, Shanghai and Singapore.
JMJ marks the third investment 3i has made so far this year, according to its website. Last month, 3i backed German automotive testing company GIF in a deal valued at €100 million. In March, 3i agreed to acquire Brazilian eyeglass retailer Óticas Carol.
3i can’t invest from its current funds because they are past their investment deadlines. The firm can invest however from its balance sheet. In a conference call in July, 3i’s finance director Julia Wilson, said it had recently seen investment opportunities picking up, particularly in Northern Europe and the US.
At the time, 3i said it sees opportunities to invest in US businesses which have a European angle and looks for deals in Northern European places like Germany and Benelux, where 3i has had “a good track-record”, Wilson said. “Conversations the firm may have had towards the end of last year are now getting into a position where it feels like there may be a deal to do”, the firm said.