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Growth Capital Partners sells Entec to Amec

Growth Capital Partners, an equity and debt provider to lower mid market companies, has sold Entec, an environmental and engineering consultancy, to Amec for an initial cash consideration of GBP61.2m.

Further payments will be made subject to retention and performance.

Amec is a FTSE 100 supplier of consultancy, engineering and project management services to the energy, power and process industries. 

This is the second realisation from GCP’s fund II and represents a return of 33 per cent IRR achieved and a 3 x money multiple.
 
Entec provides engineering design, project management, and environmental assessment to a broad range of markets. Currently the company is working on a project with the Environment Agency to help it to develop a more strategic approach to the deployment of small-scale hydropower in England and Wales. It has 14 offices throughout the UK and employs 700 staff.
 
GCP completed the MBO of Entec from Northumbrian Water in October 2005.
 
James Blake (pictured), the partner at GCP on the board of Entec, says: “This exit is a great outcome for our fund. Entec has significantly outperformed the original business plan through a combination of top quality management and the positive drivers for demand in water, waste and energy. The team, led by Simon Armes-Reardon has done an exceptional job, growing profits organically by over GBP6m since the buyout.”
 
Simon Armes-Reardon, managing director of Entec, adds: “GCP has been a supportive investor and worked closely with us from the outset, providing a flexible funding structure that enabled us to deliver our growth strategy.”

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