UK private Equity firm Sovereign Capital Partners, has exited its investment in Kindertons, a nationwide provider of outsourced accident management services for motor insurers and insurance brokers, together with claims management services, to ExamWorks, a portfolio company of Leonard Green & Partners.
Completion is subject to change of control consent by the Financial Conduct Authority and the Solicitors Regulation Authority. The exit will deliver a gross return of 8x and a 73 per cent IRR to investors.
Sovereign originally completed the management buy-out of Kindertons in October 2013, with Sovereign worked closely with the management team to appoint Jon Walden as chairman, at the time of the original MBO to help grow Kindertons, and Neil Cunningham as CEO, in early 2016 to support founder succession. Sovereign also worked with the team to develop Kindertons’ brand positioning, operations, sales and finance function.
Neil Cox, Partner, Sovereign Capital, says: “We are delighted to have partnered such a strong management team and business which provides a high-quality and valued service to its introducers and motorists. Kindertons has developed in both scale and service offering throughout the time of Sovereign’s partnership. We wish the team every success for the future.”
Neil Cunningham, CEO, Kindertons, says: “Sovereign has been a highly supportive partner that has provided both the investment and expertise to help the Group go beyond all our expectations. We worked together to deliver a buy and build growth strategy, successfully completing four acquisitions and simultaneously investing in the business to support exceptional organic growth. We look forward to continuing to take the business from strength-to-strength.”
Shaun Ellison, Founder, Kindertons, says: “Sovereign delivered exactly what they said they would at the time of the MBO in 2013. It has been an enjoyable journey since then made easier with the level of support and help Sovereign have provided over that time. I look forward to seeing the business continue to develop over future years.”
