Hg Capital and Candover exit PII

GE Capital has acquired PII Group in a £310m deal.

Hg Capital has announced that it has completed the sale of PII Group Ltd (PII), a pipeline integrity services company, to GE Power Systems, for £310m. Hg Capital did not disclose the value of their investment in PII, but confirmed that the deal represented a fourfold increase on the original investment.

Hg Capital acquired PII from British Gas in 1998, and developed the company’s position in the pipeline integrity services business through management restructuring and a series of strategic acquisitions. In 1999, PII acquired Pipetronix for £232m with Candover contributing £16.7m towards the acquisition. PII has since increased company turnover to over £115m with operations in over 45 countries worldwide.

Hg Capital and Candover were advised by Merrill Lynch (corporate finance), Lovells (legal) and Ernst & Young (accounting). Acting for GE Advisers were Eversheds (legal) and Pricewaterhouse Coopers (accounting).

Hg Capital is a provider of private equity capital with offices in the UK and Germany.  It has committed funds under management in excess of E1.4bn and in addition to general buyouts specialises in the following industry sectors: business services, healthcare, information & communications technology and media.

Candover’s investment in PII was made by the  £850m Candover 1997 Fund. Candover provides equity for large European buyouts. Investment in deals by Candover is provided in two forms, from Candover Investments plc, a publicly quoted investment trust capitalised at over £240m and from third-party funds managed by Candover.