Maven achieves a 3.3x return on exit from MSIS
Maven has realised its investment in environmental services and equipment specialist MSIS, via a sale to London-based Primary Capital for £19.5 million.
The exit has achieved a 3.3x total multiple return on the original investment for Maven client funds and represents the latest profitable disposal by Maven’s Aberdeen-based team. In recent years the team has overseen the sale of a number of high-growth energy services support businesses, including EFC Group in December 2014 for a return of 3.8x cost over five years.
Since its launch in 1998, MSIS has grown to become an independent and trusted adviser to the global oil and gas industry, offering an increasing range of skills, equipment and services. The company, employing 80 people, has a proven track-record and expertise in specialist cleaning, asset maintenance and waste management.
The team at Maven first invested in MSIS in 2007 when it supported a £6.1 million buy-in management buyout and provided a further £3.35 million of funding over the subsequent years to facilitate growth. With Maven’s support, revenues have more than doubled while profitability has increased three fold since the original investment.
This rapidly expanding company has made substantial investment into equipment and facilities at its bases in Invergordon and Aberdeen over the last two years. MSIS has also begun to focus more strategically on specialised work within the sector, leading to a record year in terms of profitability for the business in 2014.
Jock Gardiner, Partner at Maven, said: “Maven has formed an excellent partnership with MSIS’ CEO Chris Lloyd and his team following the acquisition. It is hugely satisfying to have worked with the business and in particular developed its oilfield service capability both in the North Sea and globally in recent years. This investment has delivered a highly profitable return for Maven clients and supports our long-term investment approach in this sector.”
Chris Lloyd, CEO at MSIS, added: “The MSIS management team looks forward to the next phase of our development and we would not have secured the platform that our business represents without the support of Maven over the last few years. The oil and gas industry is a cyclical but rewarding sector and having the experience, advice and support of the Aberdeen-based Maven energy services team has been critical to MSIS’ development and success”.