Kleinwort makes double exit

The UK midmarket private equity firm has announced trade sales from two portfolio companies, Vivista Holdings Limited and Sona Group and its investment trust year-end results.

Kleinwort Capital has announced the sale of IT company Vivista Holdings Limited to integrated software and processing solutions company SunGard Data System.

The total value of the transaction was £104.5 million (€151.6 million; $200.9 million), representing a cash multiple of 8.1x the firm's initial investment and an IRR of 254 percent.
 
Vivista provides IT, communications and business support services to the UK's public sector. The company was established in May 2003 as a vehicle for the acquisition of Securicor Information Systems in a £20.5 million management buyout led by the Kleinwort Capital Partners IV (KCP IV) fund.
 
The firm said in a statement that the company's profits have increased five fold since the MBO. SunGard was selected from a number of interested buyers because it had “the best strategic and management fit with the company”.
 
Kleinwort has also sold healthcare company Sona Group to UK not-for-profit independent healthcare provider Nuffield Group for an undisclosed sum. The firm led the £6.6 million MBO of the company, the first investment from KCP IV, in September 2001.
 
Established as Tweedpark Group in 1981, Sona provides in-house fitness and wellbeing services to corporate clients in the UK including GlaxoSmithKline, Clifford Chance and HSBC. Since Kleinwort's investment, the company has extended its activities into new areas including physiotherapy, nutrition, complementary therapies and medical services.
 
Kleinwort is a UK midmarket private equity firm which makes investments of between £10 million and £100 million in the media, technology, healthcare and specialist manufacturing sectors.
 
This week the firm also announced preliminary 2004 results for its investment trust Kleinwort Capital Trust plc. The net asset value per ordinary 5p share increased 30 percent during 2004, from 192.7p at 31st December 2003 to 250.5p a year later, while net earnings per share were 2.76p at 31st December 2004 compared to 3.61p a year earlier.
 
Total return per share was a gain of 60.50p compared with a loss of 17.34p for the previous year. The firm will now pay investors a dividend of 2.20p per share, bringing the total distribution for the period to 2.70p per share.