Royal Bank Development Capital (RBDC) has sold its stake in specialist security company, Geoquip Holdings to buildings material group, CRH. The 1999 management buy-in/buyout of the group was backed by a GBP1 million investment by the former NatWest Development Capital (now RBDC) and Royal Bank of Scotland. Management is retaining a 25 per cent stake in the company. Financial details of the transaction were not disclosed.
Chris Gammon, director at RBDC, said: “This has been a successful investment for both Geoquip and RBDC. Since the MBO in 1999 the management team has been successful in developing new products and market share resulting in a significant increase in profitability.” The return on the investment was around three times invested capital and Gammon said the IRR was very satisfactory.
Geoquip is a provider of electronic perimeter intrusion detection systems with installations in around 50 countries. A number of parties were interested in acquiring Geoquip’s technical skills and products. But Ireland-based CRH, through its international fencing and security business, offered Geoquip the best opportunity for future development.
Richard Fernie, managing director of Geoquip, said: “The management is delighted to become a part of CRH Fencing and Security. We believe it will enhance our ability to significantly gain market share, and open up the opportunity to increase our involvement in integrated projects.”
Catalyst Corporate Finance and Bowne Jacobson solicitors advised the shareholders, including RBDC on the original buyout and the sale to CRH.