Private Equity News & Analysis

Candover acquires second mail business

Candover has bought Secure Mail Services following its successful delisting of DX Services, a document exchange business, and now plans to bolt the two together.

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Baring English Growth Fund, now managed by secondary investor Nova Capital Management, has sold Secure Mail Services, the fund’s single largest investment of £5.8 million in aggregate, to Candover, a European buyout firm.

Candover is planning to fold Secure Mail Services into DX Services, a listed mail delivery company spun out from recruitment company Hay. Candover paid £350m (€273m) to take DX private. 

James Greenbury, chief executive of Secure Mail Services, will become chief executive of the combined businesses.

Nova said the sale proceeds from Secure Mail Services were several multiples of Baring’s original investment with the prospect of further cash to come if the company hits certain milestones. It said the realisation will result in significant distributions to investors.

Nova took on the management in January this year of the Baring European Private Equity fund, which raised €120 million ($145 million) in 1999, and the Baring English Growth fund, which raised £66 million in 2000. Both funds are now fully invested.

Andrew Inkester of Nabarro Nathanson advised The Baring English Growth Fund on the sale of the investment in SMS.