EnServe acquisition backed by HSBC and Investec

The lenders took equal shares of the less than £60m financing package, which included a working capital line as well as acquisition financing for the purchase of EnServe by Rubicon and Grovepoint.

HSBC and Investec provided a roughly £30 million ($43 million; €39 million) senior secured loan to back the acquisition of EnServe Group by Rubicon Partners and Grovepoint Capital, PDI understands. 

The six-year acquisition financing leaves the infrastructure support provider under 3x levered, said a source close to the deal. 

Private equity sponsor Cinven sold EnServe for an undisclosed price but Sky News reported that the company was sold for £60 million. 

The lenders also extended a working capital line of less than £30 million. The financing package was split fifty-fifty between the two banks, added the source. 

HSBC and Investec’s growth & acquisition finance unit stepped in to back Rubicon and Grovepoint after the firms became the preferred bidder. Another Investec unit was an existing lender to the company. 

The deal was described as a “slam dunk in terms of the motivation of the vendor” but not necessarily in terms of the financing. The borrower has had ups and downs over the years and the business is now much smaller than when Cinven bought it in 2010, as its energy division, Inenco, was sold off in 2013.

Cinven paid £360 million for EnServe in December 2010, taking the previously FTSE-listed firm private following a series of profit warnings. 

“Investec are extremely pleased to be continuing their support of the EnServe Group through this transition of ownership and additionally they are very pleased to be working once again with Rubicon Partners and Grovepoint Capital, who they consider to be highly experienced practitioners,” said Investec’s Shaun Mullin in a statement.

EnServe provides infrastructure support services to utilities and mainly operates in the UK. The company has three divisions: electricity, utility services and analytics. Group turnover was roughly £200 million for the year ending 30 April 2015. 

UK-based Grovepoint makes principal equity investments and runs a speciality lending business focused on asset-backed loans as well as managing investments on behalf of investors. 

Rubicon Partners focus on the acquisition of industrial businesses.