A provider of contract cleaning, security and maintenance for retail and business properties has been acquired in a £10 million buy-in management buy-out.
London Property Maintenance was founded in 1978 and focuses on office, industrial, retail and specialist buildings in the Southeast, providing services nationwide. Its clients include shopping centres and office buildings. LPM also offers pest control, refuse collection and services covering areas such as janitorial supplies, windows, carpets, office equipment, kitchens, stone and exteriors.
The acquisition of LPM was backed by private equity firm Sovereign Capital Partners which also committed £10 million of equity to support LPM’s ‘buy and build’ strategy, which will develop the business through organic and acquisitive growth.
Marriott Harrison advised the management team. It was led by corporate partner Duncan Innes, assisted by Ben Devons and Dan Wicksteed. Marriott Harrison continues to act for LPM.
Innes said: “This was a traditional BIMBO transaction that involved equity, loan stock, employees, management and sales. The underlying challenge was to create a synergy between the two new management team members, the existing team member and the investors. This has evidently been achieved.
“All the parties were keen to complete the business transfer and get on with running the business as quickly as possible and the transaction was successfully completed in just 18 days after the initial instruction.”
BCMS Corporate was adviser to the vendor, Chris Ryan, who led the transaction said: ‘The deal secured with Sovereign Capital represented a significant improvement on alternative offers from a number of related businesses which were already at advanced stages of negotiation.
“Once the deal was agreed a detailed due diligence process taking 12 months verified the quality and integrity of our client’s business and our representation of the business in our initial Information Memorandum. Despite the lengthy due diligence process we continued to reinforce the quality and value of our client’s business, ensuring that the deal was still completed at the agreed price.”