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Close Brothers sells Capital Incentives to strategic buyer

Close Brothers Private Equity (CBPE) has sold its 50% stake in Capital Incentives & Motivation, a UK incentive and performance motivation business based in Chester.

The company was acquired by Accor Services, one of the world’s largest groups in travel, tourism and corporate services, for £17m. The exit from Close Brothers Private Equity VI gave a return of 2.3x with an IRR of 40%.

The original buyout was made in October 2000 when CBPE backed a £10m MBO from Bank of Scotland, led by managing director Graham Povey. In the latest transaction, the management team sold 40% of its 50% stake.

The six directors will earn a combined total of £8.5m from the sale, with Povey picking up £1.8m.

The company showed a pre-tax profit for the year to February 2003 of £317,000 on a turnover of £50.5m, up from a profit of £216,000 the previous year.