Soho Square Capital LLP (“Soho Square”), the provider of flexible capital solutions to European SME’s, announces today it has provided growth capital to market-leading tech-enabled integrated facilities management provider, Arcus FM (‘Arcus’ or ‘the Company’). The deal was structured as the financing of a management buyout, which also saw Soho Square take a significant minority equity stake in the business. David Steel, Director at Soho Square, will also join the Board of the Company.
Today’s investment will enable the management team of Arcus to accelerate its ambitious expansion plans, through Soho Square’s financial backing and ongoing equity ownership, and their hands-on support and expertise in working with fast-growing businesses.
Arcus was formed in 2009 as part of a joint venture with Sainsbury's. It is a leading UK based facilities management (‘FM’) company providing bespoke FM services and technology-led solutions for its clients in the retail, logistics and public sector. The Company has experienced significant organic growth since inception, supported by its close relationship with Sainsbury’s, which continues to develop.
The existing Arcus management team will remain majority equity shareholders, led by CEO Chris Green.
This is the second transaction completed from Soho Square’s latest institutional special opportunities fund, following the investment in marine transportation provider Oslo Tankers in 2019. The Arcus deal structure is typical of the types of customised transactions that Soho Square focuses on, providing both flexible capital and dedicated portfolio company support for European SMEs.
Chris Green, CEO of Arcus FM, commented: “This is a very exciting time for Arcus. Our Company is growing rapidly so it was important for us to join forces with an institutional investor who shares our long-term vision, and this partnership will allow us to accelerate our expansion within the facilities management industry.”
David Steel, Director, Soho Square, commented: “At over £150 million of revenues and growing at an impressive rate, Arcus is already a very successful business led by an experienced management team. We were particularly impressed with the Arcus technology, especially the Helix integration platform, which has been specially developed in-house over a number of years. Given our experience in supporting high-growth companies, we see considerable opportunity for Soho Square to support the management team as it looks to build its market share in this very interesting sector. Our investment in Arcus, which sits senior in the capital structure, is typical of the type of investment that Soho Square is pursuing in the UK and northern European markets.”
Soho Square's deal team was led by David Steel (Director) and Stuart Hamilton (Associate). Soho Square's legal advisor was James Cross at K&L Gates. Grant Thornton provided buy-side financial advice to Soho Square (Usman Malik) in addition to financial, commercial and tax due diligence (Carl Parker, Ven Balakrishnan, and Lucy Orhnial). BDO Corporate Finance (Satvir Bungar) advised Arcus management shareholders on the transaction and identified Soho Square early on as a strong investor partner for Arcus.
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For further information on the Arcus deal
Soho Square Capital LLP
Notes to Editors
About Arcus FM:
Arcus FM was formed in 2009 as part of a joint venture with Sainsbury's. The UK based facilities management company provides bespoke FM services and technology-led solutions for its clients in the retail, logistics and the public sector.
Today, with over £150m of long-term contracted revenues which are rapidly growing, Arcus is a well-established top 20 UK national integrated FM provider.
To discover more, visit: www.arcusfm.com
Soho Square Capital LLP (“Soho Square”), the provider of flexible capital solutions to small and medium-sized companies, announces today that it has supported the financing of a management buyout of north-west England headquartered Pyroguard.
Over the last four years, Pyroguard, a market leading manufacturer of fire-resistant architectural glass, has experienced significant organic growth, which is expected to continue. This new investment will allow the management team of Pyroguard to accelerate their expansion plans in the UK and Europe.
The existing Pyroguard management team will become majority equity shareholders, led by CEO Neil Tilsley with Nick Brayshaw continuing in his role as Chairman. David Steel, Director at Soho Square, joins the Pyroguard Board.
The deal structure is typical of the highly flexible deals that Soho Square focuses on. By combining Soho Square’s credit expertise with extensive sourcing capabilities, the Soho Square team offers bespoke capital structure solutions for European SMEs, with enhanced portfolio company support, solving a financing gap in the market.
Pyroguard’s prior backers were Dunedin and NVM.
Neil Tilsley, CEO of Pyroguard, commented: “I am delighted that a forward thinking and proactive investor such as Soho Square has seen the potential of investing in the future success of Pyroguard. Dunedin and NVM have been highly supportive investors for several years and have played a significant role in making Pyroguard the successful high growth business it is today. Bringing in a new external institutional investor like ESO, who has supported rapid growth across a range of businesses before, will bring not only a fresh perspective but also help us to accelerate our ambitious growth plans. Pyroguard has an exciting future ahead as a result of this new partnership.”
David Steel, Director, Soho Square: “Pyroguard is already a very successful business, with an experienced management team, a strong presence in a highly technical sector with significant barriers to entry. Given our experience in working with high-growth companies, we see considerable opportunity for Soho Square to support the management team of Pyroguard as it looks to build its market share in this very interesting sector.”
Walid Fakhry, Managing Partner, Soho Square: “Our investment in Pyroguard, which sits senior in the capital structure, perfectly demonstrates our strong, flexible financing capabilities and support for ambitious growth companies.”
Soho Square was advised by K&L Gates. Pyroguard and its shareholders were advised by Clearwater International. Financial due diligence was conducted by PwC and Sentio Insight with tax advice provided by BDO, and commercial due diligence completed by PMSI.
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Notes to Editors
Based in the UK, with locations in France, Netherlands and Spain, Pyroguard is one of the world’s leading independent producers of fire safety glass.
Supporting architects, specifiers and contractors to meet all of their fire safety glazing requirements from a single source, the company offers one of the widest product ranges available. With high-performance products tailored to customers’ precise specifications, beautiful spaces for work and leisure can be created, combining safety and aesthetics without the need for compromise.
To discover more, visit www.pyroguard.eu
Core Capital Partners LLP (“Core”), the UK lower mid-market private equity fund, announces today that it has become the first institutional investor in Alpine Fire Engineers (“Alpine”). Alpine is a market leading designer, project manager, service and maintenance provider of active fire suppression systems. This new investment will allow Alpine to accelerate its expansion plans.
Alpine has experienced significant growth over the last five years, which is expected to continue both organically, as well as through select bolt-on acquisitions. The investment from Core will support the development of Alpine’s service and maintenance offering in addition to investment in IT systems.
The existing Alpine management team will remain significant shareholders, along with new CEO Steven Nanda, who joins after seven years as Managing Director of Industrial Services at SPIE UK where he held responsibility for their UK M&A strategy. David Steel, Partner at Core, also joins the Alpine Board.
Last week, ESO Capital, the specialist investment firm that provides hybrid capital solutions to European SME’s, announced its acquisition of Core Capital. By combining ESO Capital’s deep debt capabilities with Core Capital’s extensive equity expertise, the enlarged business will offer even more flexible capital structure solutions for lower and middle market European companies, with enhanced portfolio support.
Steven Nanda, CEO of Alpine Fire, commented: “I am delighted to have joined Alpine as CEO. The employees, customers and sector expertise have built a fantastic platform for the business to continue to succeed. Bringing in an external institutional investor who has supported rapid growth across a range of businesses will bring a new perspective and help to accelerate our development.”
David Steel, Partner, Core Capital: “Alpine is already a very successful business, with a high-quality management team and a strong presence with its loyal customer base. Given our experience in supporting high-growth companies, we see considerable opportunity for Core Capital to work with Alpine as it looks to build its market share in this very interesting sector. Our investment in Alpine, which is at the top of the capital structure, is typical of the type of investment that the enlarged ESO Capital group will be pursuing in the future.”
Core’s legal advisor was Andrew Masraf at Pinsent Masons, with Management advised by JMW and Paul Hastings. Hurst Corporate Finance advised Alpine on the transaction. Financial due diligence was conducted by Grant Thornton and commercial due diligence was completed by Teneo (previously Credo Consulting).
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For investment enquires
David Steel (Core Capital)
+44 203 7949 750
For further information
+44 207 952 2000
Matthieu Roussellier, Matthew Goodman, Clare Glynn
Notes to Editors
About Alpine Fire Engineers:
Alpine Fire Engineers Ltd were established in 1992 and are a 1048 – 1 Level 4 Loss Prevention Standard approved contractor, the highest level attainable from the Loss Prevention Certification Board. Alpine operate nationally and specialise in the mitigation of client risk through the design, project management and maintenance of fire suppression systems.
About ESO Capital:
ESO Capital is a London-based investment firm providing hybrid private-capital solutions to European small and medium-sized enterprises (SMEs). ESO Capital’s acquisition of Core Capital is subject to regulatory approval and will combine its debt capabilities with Core Capital’s equity expertise. With over 75 deals completed and more than €1.1 billion of funds raised to date, the enlarged ESO Capital team will have the expertise and flexibility to invest up to €40 million in any given transaction, across the capital structure, from senior debt to equity. The team works closely with business owners and management teams to structure innovative, bespoke financing solutions and offer enhanced portfolio company support.
"From rigs to risottos, making one's mark by feed the nation"
Core Capital Partners LLP (“Core Capital”), the lower mid-market UK private equity fund, announces today it has completed the sale of Ark Home Healthcare (“Ark”), the nationwide provider of domiciliary healthcare.
For further information, please refer to www.soho-sq.com