Kelso earns 4x in partial exit

The trade sale of one division of building and energy control systems company i2S nets Kelso around £10m.

Kelso Place Asset Management, a UK-based firm that focuses on special situations and turnarounds, has completed a partial exit of portfolio company i2S Group. Financial details were not disclosed, but a source close to the process pegged the deal at around £10 million.

Kelso said the exit, which sees one division of i2S sold to US trade buyer Carrier Corporation, brings to 4 the return generated on its original investment. Carrier Corporation is the world’s largest provider of air-conditioning, heating and refrigeration solutions and is acquiring the division of i2S that produces building control systems. 

Kelso Place made its initial investment in i2S in 2003, when it purchased the business and assets of ARQ Communications from administration. Over the course of Kelso’s investment to date, the business has completed four transactions: thee bolt-on acquisitions and one disposal.

Following the sale to Carrier, Kelso retains a majority stake in the remaining data communications business, ITM Communications.

Kelso is currently understood to be raising its first institutional fund with a target size of £100 million (€111 million; $165 million).