CVC exits Building & Property for £74.8m

Buyer Tilbury Douglas is funding the acquistion by a rights issue that will cover both the purchase and the assumption of Building & Property’s circa. £10m net debt.

CVC Capital Partners has sold Building & Property, one of the UK's largest facilities management companies to Tilbury Douglas for £74.8m (E122.7). Tilbury will also assume Building and Property’s net debt upon completion, which is expected to be £10.2m after redemption of preference shares.

CVC bought into Building & Property for around £30m when it was formed in a management buy-out from Amec in 1996. In the interim it has enjoyed compound turnover growth of 30% per annum. CVC owned 75 per cent of the company prior to the deal and management and employees owned the rest.

Tilbury Douglas is raising approximately £34.5m, before expenses, through a vendor placing of 8.11 million New Tilbury Douglas Shares at 425 pence, to part finance the deal. 2.01 New Tilbury Douglas Shares will also be issued to the management and employees of Building & Property. The issue of 0.48m of these shares will be deferred, pending the close of a Private Finance Initiative contract.