JF Lehman & Company, a New York and Washington DC-based middle-market private equity firm focused exclusively on the aerospace, defence, maritime, government, and environmental sectors, has acquired UK-based firm GMO, as well as Integrated Global Services, within the space of less than a week.
The firm’s latest acquisition represents the first platform investment by JFLCO’s latest fund, JFL Equity Investors V.
Headquartered in Richmond, Virginia, IGS is a provider of highly engineered, proprietary surface protection solutions and technologies to a diversified global customer base. The company’s technologies and services solve metal wastage and reliability problems in mission-critical equipment found across energy, power generation and other industrial end markets.
“We are excited to have IGS join our growing portfolio of companies in the environmental and technical services sector,” said Alex Harman, a partner with JFLCO.
“The company is an excellent fit with our investment strategy given its 30+ year history of innovation and growth, long-term partnerships with leading customers and talented global workforce. We are pleased to partner with the IGS management team and support IGS in its next phase of growth,” added Harman.
IGS’s CEO Rich Crawford commented: “We are excited to partner with JF Lehman & Company as we further expand our global customer reach and continue to help our customers solve their unique reliability, efficiency and durability requirements.”
Jones Day served as legal counsel for JF Lehman & Company. Harris Williams served as financial advisor to IGS and Kirkland & Ellis LLP provided legal counsel to the selling shareholders. Debt financing for the transaction was provided by Benefit Street Partners.
Just a few days earlier, on 30 January, JF Lehman & Company also agreed to acquire Global Marine Group in a deal worth around USD250 million.
The agreement, which is expected to close in the first quarter of 2020, involves GMG selling 100 per cent of its equity interests, excluding the previously announced sale of GMG’s 49 per cent joint venture with Huawei Marine Networks Co, for USD250 million in cash to JF Lehman & Company.
Virginia-based public financial services company HC2 Holdings holds an approximate 73 per cent equity interest in GMG, which is based in Chelmsford, UK. The deal also includes a potential future earn-out should JFLCO and its investment affiliates achieve a specified multiple on their invested capital.
International law firm Hogan Lovells advised Global Marine Group on this transaction. The Hogan Lovells team advising GMG was led by Northern Virginia corporate partner Carine Stoick with assistance from senior corporate associate Ashlee Sawyer Gilson.
London partner Karen Hughes and DC partner Christine Lane advised on tax. London partner Faye Jarvis and DC partner Carin Carithers advised on pensions, executive compensation and employee benefits.
Debt financing for the transaction was provided by Deutsche Bank. Winchester Capital served as financial advisor to JFLCO and Jones Day (lead counsel) and Blank Rome (maritime) provided legal advice. Deutsche Bank and ABN AMRO served as financial advisor to Global Marine Group.
