UK
Deal Maker of the Year Awards 2013 WINNER - CHRIS FROGGATT
DEAL: WHP Projects Limited - 29 June 2013 NAME: Chris Froggatt COMPANY: Convex Capital POSITION: Partner TEL: 0161 819 2500 EMAIL:
team@convexcap.com
DEAL OVERVIEW
The transaction involved the sale of a minority stake in WHP Projects Limited to Key Capital Partners, in a deal that valued the Business at £17.9m. Senior debt and banking facilities were provided by the RBS.
WHP is a leading provider of support services to the mobile telecoms infrastructure sector, operators such as
including Everything Everywhere and
Vodafone. The Business provides end-to-end services for the deployment, upgrade and maintenance of mobile network masts, antenna and base stations, helping mobile operators to strengthen their coverage across the UK.
WHP was owned by Rob Potter, Paul Hullah and Martyn Cheyne, following an MBO in 2008. The management team wanted to explore ways of taking their business to the next level of growth and also realise some of the value they had created in the Business.
Convex Capital originated, led, structured and arranged the transaction, acting on behalf of the three shareholders and the Company. This
role
involved preparing the Business for private equity investment,
approaching suitable private equity
houses, negotiating the offers and arranging banking facilities, to ensure the final transaction fully met our client’s objectives and that the Company was well funded. We spent time understanding exactly what our client wanted to achieve and used our knowledge of the private equity market to deliver a transaction that exceeded expectations.
The management team are very experienced telecoms professionals and have an excellent track record, which when combined with WHP’s outstanding margins, and growth opportunities meant the transaction was a compelling private equity opportunity. However, there
We are an owner-managed business ourselves and working with like-minded people is very rewarding. We completely understand that a clients decision to sell their business wholly or even partially is never taken lightly and we work tirelessly on their behalf to achieve an exceptional result.
In terms of hobbies and interests I have 3 young children which means my free time is pretty hectic, active and fun. I am a keen follower of most sports including football, rugby, golf and skiing. I am also a lifelong Sheffield Wednesday fan and have followed
BIO
I have been a partner at Convex Capital for over 14 years, and am passionate about my role, as I am working with talented people and remarkable clients every day, which means I have one of the best jobs in the world.
We act for owner managed entrepreneurial businesses, and no two clients or businesses are the same. The exciting part of my job is building strong relationships with my clients, understanding what they want to achieve and what makes their businesses so special. I feel a fantastic sense of pride when assisting our clients to achieve their goals and ambitions.
them through thick and thin (although it has been mostly thin over the last 20 years).
Convex Capital Transactions Over the last 12 months or so we have had a fantastic run, completing 8 deals, with deal sizes ranging from £10-£35m. Sectors have included e-commerce (3), telecoms, smart logistics, gps technology, international retail and insurance services. Five of these business were sold to overseas trade buyers, and three were private equity transactions.
2014 and Beyond Whilst there are still a few global uncertainties which may affect the UK economy in the longer term, including the economic situation with the Euro, US debt levels and China’s growth rate, confidence has returned to the financial markets, flotations are again becoming increasingly popular, investors and trade buyers have cash to invest, debt markets are easing gradually and capital gains tax is at a very attractive rate for the time being.
All these ingredients
mean that 2014 will be an excellent year for owner managers to explore selling their Company to trade buyers, or to seek investment in their business.
www.finance-monthly.com 43
were still a few challenges to overcome, including the fact that the mobile sector is now dominated by two major operators, and therefore concentration issues arose, capital investment in the telecoms sector was only visible in the short term and some of WHP’S peers were not trading particularly well. These potential issues were overcome by working closely with
management and helping them develop a business plan aimed at diluting the Company’s reliance on telecoms revenues over the next 5 years by diversifying into other complementary market sectors and also articulating the strength of WHP’s relationships with its current client base. The transaction was completed on 29 June 2013.
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