Zeus Private Equity completes third deal

Zeus Private Equity (ZPE) has completed its third investment, backing the management buyout of specialist networking services supplier, Electranet (UK) Limited.

Based in New Milton, Hampshire, Electranet was founded in 1996 by current owner and Managing Director, Andy Richards, and his business partner, Andy Crouch. The company specialises in providing outsourced installation and maintenance services. Its primary focus is on IT hardware, network and cabling for public sector organisations in the UK, Northern Europe and North America, including the Ministry of Defence, HM Prison Service and the NHS.

ZPE has invested £6 million as part of a funding package worth more than £22 million. HSBC Southampton provided senior debt and working capital facilities. The transaction has allowed Andy Crouch’s stake in the business to be bought out.

ZPE has introduced Bob Holt to the business as Chairman. As Chairman of AIM-listed support services firm, Mears Group, he has extensive experience of working with public sector organisations and will assist the management team in devising and implementing plans for the future development of the business. In addition, David Robertson, the current Finance Director of The Mears Group, is joining the board as a non-executive Director. ZPE partners Ed Fazakerley and Tony Dickin will also join the Board.

Tony Dickin commented on the deal:"Andy Richards and the rest of Electranet’s management team have an excellent reputation and long-term experience in the public sector, which have resulted in impressive growth over the last few years

There is also significant scope for further growth, both in the existing contracts that the business has secured and via potential new business. We look forward to working with the management team to fulfil their plans for the continued development of the company."

Paul Russell and Darren Phillips at BDO Stoy Hayward Southampton carried out the financial due diligence and Rebecca Grisewood, Kate Richards and James Pochin from Halliwells were ZPE’s legal advisers. Warren Chester and Seamus Harcourt-Wood of Deloitte carried out a commercial due diligence exercise on behalf of ZPE and Marsh advised on all insurance issues. The Electranet management team was advised by Mark Aitchison and David Chapman at Princecroft Willis, and Sean Wright and Lynne Knight of Shoosmiths.

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