Tuesday 29th October 2013

Total Capital Partners backs buy-out of Meter Provida Ltd

Total Capital Partners is pleased to announce it has backed the buy-out of Meter Provida Ltd (MPL), a supply-chain management firm serving the gas metering industry, from its parent company Fusion Group Ltd. Natalie Eastham and Paul Brown led the investment for Total Capital Partners.

MPL is a leading independent supplier of gas meters, providing a full service offering for its customers, including kitting, stock-holding, logistics and full track-and-trace services via its bespoke software system, Slipstream. Its customer base includes the UK’s largest meter asset managers, gas suppliers, network operators and utility infrastructure providers.

The business has delivered impressive growth with revenues increasing from £12m to £25m in the three years to March 2013. EBITDA in the year to March 2013 was close to £4.0m.

Total Capital is backing Tim Houtby, the existing Managing Director of MPL and Stephen Burr, the incoming Finance Director, to take the business independent and maximise its growth in a market place that is forecast to grow strongly in the next few years, as the UK’s 23 million industrial, commercial and domestic gas meters are replaced with smart meters.

Mr Houtby has been with Meter Provida since its inception and has been responsible for driving  the impressive growth in recent years. Stephen Burr is appointed as Finance Director. Mr Burr knows the industry well as he was previously the Finance Director of Delta Fluid Products, where he worked with Ms Eastham on the buyout of that business.

Total Capital Partners provided both debt and equity for the buy-out, delivering a tailored financing package to suit the cashflow requirements of the business. Total Capital takes a majority equity stake alongside management’s equity stake and a rollover stake from Fusion Group.

Natalie Eastham of Total Capital Partners commented: “We are delighted to back Tim and Stephen as they embark on the next phase of growth for MPL. The industry presents exciting growth opportunities as the impact of deregulation continues and the smart metering opportunity takes shape.  MPL has established itself as a key service provider in the market place and we  look forward to investing further in its development in the coming period”.

Tim Houtby of Meter Provida Limited said: “Total Capital has provided a bespoke financing  package to suit the needs of our business as it grows. I am looking forward to working with them”.

Total Capital arranges financing for each of its investments on a deal-by-deal basis, with funds for this investment coming in the main from two of the UK’s leading institutional investors.

Ward Hadaway provided buy-side legal advice, KPMG conducted financial due diligence and PMSI completed commercial due diligence.

Total Capital Partners

Total Capital Partners provides single source financing for established SMEs with operating profit between £1.0m and £5.0m. By providing the total debt and equity requirements in an investment, this removes any reliance on third party leveraged finance, and furthermore, it reduces complexity  in the deal process and in the ongoing investment period. The Total Capital approach offers enhanced flexibility and the financing is tailored to the specific needs of each business.

Total Capital’s approach delivers an attractive blend of returns to its investors comprising cash yield, contractual return and equity upside. In addition, the security in the structure and the swift return of capital makes for a highly attractive alternative to the typical leveraged model for investors.

For further information please contact: Natalie Eastham: 07976 606899

Paul Brown: 07900 137605