Aberdeen Murray Johnstone Private Equity is celebrating two exits in the space of two days. Its first is in the form of a refinancing of Tenet, a UK IFA distribution group and it has also announced the sale of its stake in Oxygen Communications Limited.
Tenet has secured an investment from Friends Provident and Norwich union, each committing £9.5 million to the business. The investment will enable Tenet to accelerate the development of its core distribution business and on-line capabilities. The deal is a combination of shares and loan capital, with both companies each taking an equity stake of 9.99 per cent. The equity stake is being acquired from AMJPE, which will retain a substantial shareholding. The majority of the remaining investment will replace funding put in place at the time of the management buyout. The refinancing has resulted in an IRR of around 30 per cent for AMJPE clients.
Tenet was originally bought by the current management team in April 2000, with the support of AMJPE.
AMJPE’s client Aberdeen Development Capital (ADC) has also sold its 35 per cent holding in Oxygen Communications Limited to Sagitta Private Equity in a secondary buyout transaction. Sagitta has invested a total of £3.65 million in equity. The exit has returned a capital gain in excess of £1.1 million to ADC and an IRR of 40 per cent over the four year life of the investment.
Bill Nixon, head of AMJPE’s Glasgow office, said: “Oxygen has grown steadily over the past four years and we are very pleased with the return generated. We wish the company continued future success.”
Oxygen was formed in May 1998 as the acquisition vehicle for Rushton Connections, currently known as Connections Plus, a call centre based in North Yorkshire. Oxygen was created as a buy-and-build vehicle and subsequent acquisitions followed in 1999 of two complementary businesses, 911 Sales Limited and Interfunction Limited, based in Burnley.