Background
• Accord is a leading provider of outsourced services to the public sector in the United Kingdom with run rate turnover and EBITDA of £280m and £17m respectively
• It provides highways maintenance, waste management, housing maintenance and facilities management services to a broad range of public sector clients under long-term contracts
• Close Brothers Corporate Finance has been financial adviser to Accord for over nine years since advising the Company on its demerger from the John Doyle Group in 1998. This sale represents the fifth transaction on which Close Brothers Corporate Finance has advised the Stefanou brothers Stef and Stelio, including the initial demerger, two refinancings and two sales
Process & outcome
• Close Brothers Corporate Finance was appointed in March 2007 by Stelio Stefanou, the majority shareholder of Accord, to advise on a sale of the business
• After reviewing a range of options, Close Brothers Corporate Finance ran a very competitive auction process with a timetable that was accelerated in order to take advantage of buoyant market conditions and minimise disruption to Accord’s public sector customer base
• Close Brothers Corporate Finance designed and managed the entire process, advising on tactics, co-coordinating interactions with regulatory authorities, ensuring that all other advisers were performing in accordance with a tight timetable, assisting in the structuring of an innovative solution for the pension deficit and leading multi-bidder negotiations
• The transaction was completed on schedule and at a premium valuation, realising significant value for Accord shareholders
Testimonial
Stelio H. Stefanou, majority shareholder and Chairman of Accord, commented:
"Close Brothers Corporate Finance's advice was crucial to achieving this excellent result for shareholders. In the context of an extremely tight timetable and numerous complexities, Close Brothers Corporate Finance drove the process forward in a smooth and efficient manner, maintaining competitive tension throughout and ultimately ensuring a successful outcome.”
Gareth Davies, a Managing Director of Close Brothers Corporate Finance, commented:
“This is an excellent deal for Accord shareholders at a premium valuation. It is exciting for Close Brothers Corporate Finance to be involved in yet another landmark deal in the support services sector. The deal combines two successful businesses with established brands and client bases to create a £1bn turnover business with an excellent future.”
For more information regarding this transaction, please contact Gareth Davies, or Charles Price on +44 (0)20 7655 3100.