Permira to sell 50% of stake in Hogg Robinson float

Permira, Europe’s largest buyout firm, is planning to float portfolio company Hogg Robinson later this month with an expected market cap of £400m to £450m.

Permira is planning to float Hogg Robinson, a specialist corporate services company providing outsourcing and consultancy services to UK and international clients, on the London Stock Exchange later this month.

The European buyout firm is expected to sell approximately half of its 90 percent stake in Hogg Robinson, according to a report in the Financial Times. Permira declined to comment on the speculation.

Hampshire-based Hogg Robinson announced yesterday that it plans to raise approximately £190 million (€133 million) in a listing which will give the company a market capitalisation of between £400 million and £450 million. Lazards is advising on the flotation, with Lazards and Merrill Lynch acting as joint sponsors.

Permira, which held a first close of its fourth fund on just over €10 billion ($12.8 billion) in July of this year, backed the take-private of Hogg Robinson in a €640 million transaction in May 2000.

The company generated revenue of £297.2 million in the financial year ended 31 March 2006, up from £270.6 million in 2005, and EBITDA of £44.2 million.

Hogg Robinson’s benefits and consultancy division, including Paymaster, Entegria and Claybrook were sold by Permira to London-based private equity firm Duke Street Capital in July 2005 for an undisclosed sum.