mynth
← DATABASE
10/2012

LGV Capital takes majority stake in AIR ENERGI

UNITED KINGDOM Professional Services / HR & Capital / Temp Work / Staffing EV £50–150M

Context

LGV Capital acquired a majority stake in Air Energi Group in October 2012, taking control of the oil and gas manpower services business through a management buyout in which the existing team kept a shareholding. Palatine Private Equity sold after slightly more than three years, having invested through its Buyout Fund I in August 2009. The transaction valued the company at an enterprise value of £50–150M, an EV/EBITDA multiple of 5x–12x on an EBITDA of £5–25M, more than double its level at entry, and returned three times Palatine’s equity investment. Chairman Ian Langley stayed with the business, which he had led throughout the previous ownership. LGV backed the management team’s plan to reach a turnover target by the end of 2013 and to double profitability again within five years. HSBC provided the senior debt package and increased working capital facilities across the group’s markets. Deloitte advised Air Energi on the sale, with Gateley acting as legal counsel to management and Palatine.

-> Deep-dive in Business Services market trends

Target

Air Energi supplies engineers and technical specialists to oil and gas companies, on contract, project or permanent assignments. It recruits and selects the personnel its clients need, then employs them and handles their payroll, visas, travel, accommodation and support throughout their postings, often on remote sites or in countries where those arrangements are complex. Its clients are energy companies and contractors, and it works through a network of offices in the producing regions where its contractors are deployed.

Ent. Value

£50–150M

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

5x–12x

EV / EBIT

[members only]

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2012
[members only]
£5–25M
[members only]
2011
[members only]
£5–25M
[members only]

Other operations with AIR ENERGI

Other operations with AIR ENERGI

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
01/2016SWIFT WORLDWIDE RESOURCESAIR ENERGIUNITED KINGDOMTemp Work / Staffing
08/2009Palatine Private EquityAIR ENERGIUNITED KINGDOMTemp Work / Staffing

REFERENCES

Valuation range: EV £50–150M

EBITDA range: £5–25M

EV/EBITDA range: 5x - 12x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of AIR ENERGI by LGV Capital are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.