Enterprise is a leading provider of support services to utility companies, local authorities, education establishments and other organisations in the public and private sectors in the United Kingdom. The Company operates in three divisions: utility services, public / private sector maintenance services and professional services. In the year ended 31 December 2006, the Company reported sales of £642.9 million and operating profit of £40.9 million.
Close Brothers Corporate Finance has been retained adviser to Enterprise since August 2000, following Close Brothers Corporate Finance advising ARM Services Limited (“ARM”) on its reverse takeover of Enterprise, during which ARM’s management team replaced Enterprise’s existing board.
Close Brothers Corporate Finance were appointed to advise the Independent Directors after it was announced on 8 November 2006, that the Management team, who had been approached by a private equity firm, had been given permission to explore a potential management buy out.
On 19 February 2007, an announcement was made confirming that the Company was in discussions with 3i regarding a potential offer at 605 pence per share and subsequently a recommended cash offer was made on 23 March 2007. The Offer represented a premium of approximately 29.6 per cent. to the closing price of 467 pence per Enterprise Share on 7 November 2006, the last business day prior to the announcement that Enterprise was in talks regarding a possible offer; and 40.7 per cent. to the average closing price over the 12 month period prior to the announcement. The offer was declared unconditional in all respects on 30 April 2007.
Peter Alcaraz, Head of Support Services at Close Brothers Corporate Finance said:
“Our role in the transaction is a strong example of the value Close Brothers Corporate Finance adds, both through our extensive experience in working with public companies and our knowledge of the support services market. This transaction adds to our excellent track record in this sector”.
For more information regarding the transaction, please contact Peter Alcaraz on +44 (0) 20 7655 3100.