Property management business Peverel Group has been saved out of administration through a deal involving Electra Partners and Chamonix Private Equity.
The Hampshire-headquartered business, which entered administration in March 2011, has been acquired by the London-based private equity firms as part of a £62 million deal including Peverel’s subsidiaries.
According to a statement the rescue deal saves 4,200 jobs and includes a commitment to ongoing investment following a ‘substantial reduction’ in the borrowings of the business. The Group’s debt is set to fall from £125 million to £25 million.
As part of the deal, Janet Entwistle has joined the company as chief executive on the back of serving as managing director of BT Fleet. Further personnel additions come in the shape of Paul Lester, former chief executive of VT Group, as independent non-executive chairman.
Entwistle says the transaction marks a ‘new beginning’ for Peverel. She adds, ‘I look forward to working with the rest of the management team to ensure we develop this business by delivering on our promises to our customers.’
Alex Fortescue, chief investment partner at Electra Partners, believes that after a year of uncertainty, Peverel now has a ‘bright future’.
‘We are putting the business on a stable financial footing from which Janet Entwistle and the existing management team will focus on delivering best-in-class service for all Peverel’s customers and building the business over the long-term.’
Following the transaction the business can move forward with a more appropriate capital structure, says Jane Crawford, managing partner at Chamonix.
She adds, ‘It now has in Janet Entwistle a new leader, with a great vision. Our commitment is to support her and her management team with on-going investment to deliver the exciting future we all see for this business.’