N+1 Mercapital sells facility management business

The exit has generated €49m of capital gains and an annual return of 22%

Madrid-based N+1 Mercapital has sold its stake in Clece, a facility management business, to ACS Group, a Spanish construction and services business, according to a statement.

The deal value was undisclosed, but the divestment has generated N+1 Mercapital a capital gain of €49 million and an annual return of 22 percent, the firm said.

Clece, which was founded in 1993, offers cleaning, maintenance, social, airport, environmental, hospitality and advertising services. It has more than 5,000 customers from a broad spectrum of sectors and employs more than 65,000 people.

N+1 Mercapital invested in Clece in early 2012. Since then, the company has grown by almost 14 percent, bringing revenue to over €1.2 billion. This has been driven by significant diversification into complementary businesses and new foreign markets, the firm said.

It is unclear from which fund the initial investment was made. N+1 Mercapital did not respond to a request for comment at press time.

N+1 Mercapital planned to complete a few more sales before coming to market in the second half of 2014, a source told Private Equity International last November. The firm aims to raise a €500 million vehicle called The Spanish International Growth Private Equity Fund, which will target Spanish mid-market companies with clear international expansion plans, mainly in Latin America.

In 2012, N+1 and Mercapital merged to reinforce their international expansion. Mercapital Spanish Buy Out Fund III, a €500 million 2006-vintage, is fully invested, with some left over capital for add-on acquisitions. N+1 Private Equity Fund II, a €300 million 2008-vintage, is understood to be approximately 70 percent invested, PEI reported last November.

Since 1985, N+1 Mercapital has invested in 108 companies and exited 88. It has more than €1 billion of assets under management.