Palatine Private Equity portfolio company Air Energi Group has completed a management buyout led by LGV Capital.
The deal sees LGV acquire a majority interest in the business. HSBC provided a senior debt package and various increased working capital facilities globally.
Palatine Private Equity, Air Energi Group’s previous investor, has exited the business after three years. During the period of their investment, the business has more than doubled net profitability.
Ian Langley, Air Energi Group chairman, says: “We are very pleased to complete this buyout transaction following a positive investment experience for Palatine and all of the shareholders in the business.
“We are looking forward to working with LGV as our new partners in the future. Our market continues to offer exciting opportunities for growth which we will seek to exploit as well as further enhancing our excellent quality of service to our clients.
“LGV’s equity investment positions Air Energi perfectly for continued future growth. Our strategy is, with LGV’s support, to become a half a billion-dollar turnover business by the end of 2013 and to doubling profitability again within the next five years.”
Gary Tipper (pictured), managing partner of Palatine Private Equity, says: “Air Energi is one of the leading businesses in its sector, with a truly international footprint. Itsgrowth in the past three years, both organic and acquisitive, leaves it well-positioned for the future. I wish the team all the best in the future and with their partnership with LGV.”
The transaction sees Palatine Private Equity exit the business, delivering a 3x return for the firm.
Air Energi’s sell side corporate finance advisors for the deal were Deloitte Manchester, led by Andy Westbrook and Oliver Tebbutt, supported by Ryan Hallworth.
Rebecca Grisewood and Kate Richards from Gateley solicitors provided legal advice to management and Palatine throughout the transaction. HSBC was represented by Alan Rigby and Noel Jones.
