Spectrum Corporate Finance has successfully advised Connection Capital on a debt raise to part-fund the acquisition of ACT Clean in conjunction with Santander Growth Capital and management.
Founded in 2006, Associated Continuity Teams Ltd (ACT Clean), is a specialist outsourcing company providing managed services to the luxury hospitality sector. The company has grown swiftly, alongside the expansion of upmarket hotels and restaurants in London, and is now the market leader in its luxury niche. Its impressive, long-term client base ranges from Michelin-starred and prestigious restaurant groups such as Caprice Holdings (owner of The Ivy and J. Sheekey) to well-known hotel marques including Claridges, The Ritz, The Savoy, through to the Royal Household.
The £10.2m MBO puts ACT Clean in a good position to take advantage of future growth opportunities with five-star hotel stock in the capital scheduled to have increased by 22% from 2015 levels by 2018, with all these new properties having high end restaurants attached.
The Spectrum Debt Advisory team, of Ian Milne and Simon Sherliker, were engaged by Connection Capital to take them through the process of raising funds to support their investment into ACT Clean. This involved presenting to potential lenders, deal structuring, securing credit approvals, re-banking, negotiation of terms and handling all of the banking legal documentation.
Miles Otway, Partner at Connection Capital, led the transaction and will join the Board of Directors at ACT Clean.
“ACT Clean’s leading position in its niche luxury market, experienced and proven management team, prestigious client base and strong pipeline of growth prospects make it a highly attractive investment proposition. We look forward to working with the senior management team of John Stevenson, Gillian Thomson and David Murray to take the business on to its next stage of growth. Ian and Simon’s support was invaluable in structuring and completing the debt element of the transaction. Their calm, pragmatic and detailed approach ensured the business received the right funding package to support the MBO and help deliver the company’s undoubted growth potential.”Miles Otway, Partner at Connection Capital
"Simon and Ian’s knowledge of the debt markets allowed ACT Clean and Connection Capital to secure a competitive funding package and deliver the MBO. The facilities will now allow us to fully focus on the continued delivery of growth with the support of a well-matched lending partner in Santander.”David Murray, CFO at ACT Clean