Type: MBO
Total Invested: £2.5 million
Returns: 4.4x
Date Completed: May 2005
Date Realised: October 2007
Sector: Support services
Company Background
Founded in 2000 by David Steventon and Frank Rodriguez, Covion provided complete outsourced facilities management services to commercial and industrial companies.
Foresight Investment
Foresight invested £2.5 million in Covion in 2005 as part of an £8.4 million fundraising to support an MBO of the Company from the original business angel backers.
Deal Attractions
Covion had shown impressive growth since its formation and was run by a solid management team with a proven industry track record who had worked together for a long time. The Company had a number of blue chip clients and the business’ core proposition, the provision of total facilities management services, was gaining increasing market traction. Moreover, the facilities management sector was fragmented and had experienced significant levels of acquisition activity, making it likely that an early exit could be achieved.
Company Achievements
Covion maintained its growth following the MBO, winning major new contracts and reaching an annualised turnover of £34 million.
Exit
Covion was acquired by Balfour Beatty for £33 million in October 2007, generating a return of 4.4x Foresight's original investment.
News Update
- 03/02/2012 - Foresight sells stake in Factory Media to Forward Internet Group
- 02/02/2012 - Foresight Group sells stake in Autologic generating 3.4 times return for investors
- 01/02/2012 - Foresight contributes to groundbreaking report “Towards the Circular Economy” published by Ellen MacArthur Foundation