Aurigo, led by ex-MP and past CEO of Asda, Archie Norman, acquired the company from private capital company 3i. Norman now becomes chairman of HSS.

The deal was financed with funds from Och-Ziff Capital Management Group and more than quadruples the return to 3i shareholders.

3i purchased HSS, which operates throughout the UK, Ireland and France from the Davis Group in December 2003 for £145 million.

“We hadn’t planned to make a realisation at this stage, but with the business well ahead of its milestones, and strategically attractive to others, the board of HSS and 3i decided Aurigo’s offer provided the right solution for both the HSS shareholders and the business,” said Ken Beaty from 3i.

HSS’ chairman Alan Peterson commented: “This is the kind of substantive improvement to a business that the private equity model can achieve.

“HSS has come through a complete turnaround since 2004 and earlier in the year reported EBITDA of £40 million for the year ending December 2006 – some 30% higher than when 3i first invested, and is now a business that is set on a path of rapid growth.”

3i was advised by Hawpoint partners and Travers Smith, and Och-Ziff by Lazard.