Close Brothers sells Gradus to management in £41m secondary buyout

Close Brothers Private Equity, the semi-captive buyout arm of the bank, has made more than three times its money with the sale of a contract interiors business to Bank of Scotland.

Close Brothers Private Equity has sold Gradus, a contract interiors business, back to the management team with backing from Bank of Scotland Integrated Finance for £41 million.

Close has made 3.1 times its original investment and an IRR of 28 percent over its five year investment period.

The firm invested £11 million when Gradus was acquired in a £30 million buyout from the Headlam Group in December 2001.

It is the fourth disposal from Close Brothers’ Fund VI since December 2006, following disposals of Minova International, Moody’s and Tractiv.

Sean Dinnen, Close partner negotiated the original acquisition and served as non-executive director of Gradus throughout the period of the firm’s ownership.