CPS embarks on next phase of development with new lead investor, H.I.G. Capital

Company Announcement

H.I.G. Capital, LLC (“H.I.G.”), a leading global alternative investment firm with $50 billion of equity capital under management, is pleased to announce that one of its affiliates has acquired CPS Building Services Limited (“CPS” or the “Company”), a leading UK provider of mechanical and electrical (M&E) services, from its founder James Rust. CPS’ current MD, Liam Connelly, will reinvest alongside H.I.G. The financial terms of the transaction have not been disclosed.

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CPS provides installation and maintenance services across heating, cooling, ventilation and electrical systems to clients in the healthcare, life sciences, defence and education end-markets. The business has developed a strong reputation for high-quality service provision in its East Anglia home market. H.I.G., together with the management team, aims to continue CPS’ track record of organic growth with a particular focus on growing its electrical and maintenance offerings. The existing management team of CPS will remain in place.

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H.I.G. intends to use CPS to form the core of a wider technical building services group by acquiring businesses active in fire protection, water and pumps, lifts maintenance, access and security, and associated compliance services. H.I.G. is partnering in this effort with Jonathan Simpson-Dent who will take the role of executive chairman of the group, several active acquisition discussions are currently underway.

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Liam Connelly remarked “This is a fantastic new chapter and testament to the commitment of the team in serving our clients and building the CPS business. Together with H.I.G., our joint vision will create a unique range of essential building services and expertise that will benefit our clients.”

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Jonathan Simpson-Dent said “Liam and his team have built a hugely impressive business at CPS, one that is focused on delivering quality service to its customers and has an unparalleled reputation in its local market. I’m excited to be working with Liam on the next phase of growth at CPS and driving expansion into associated service lines through M&A to create a one-stop shop for customers of technical building services.”

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John Harper, Head of the H.I.G. Europe Lower Middle Market LBO team in London, said “We are very excited to be partnering with Liam, Jonathan and the CPS team to build on the Company’s track-record of success. CPS’ reputation for exceptional service and high-quality delivery has stood out to us since our first meeting with the Company. We look forward to working with Jonathan to acquire additional technical building services offerings to complement CPS leveraging H.I.G.’s deep M&A expertise.”

About CPS

CPS is a dynamic and innovative M&E provider based in the heart of Cambridgeshire. The business has focused on delivering high quality installations and maintenance to customers centred around the values of innovation, teamwork and community. For more details see www.cpsbuildingservices.co.uk/.

About H.I.G. Capital

H.I.G. is a leading global private equity and alternative assets investment firm with $50 billion of equity capital under management.* Based in Miami, and with European offices in London, Hamburg, Madrid, Milan, Paris, and U.S. and Latin American offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, Bogotá, Rio de Janeiro and S?o Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:

1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
4. H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.