HgCapital, the Manager of HgCapital Trust has announced that it has made a majority investment in Citation, which they describe as one of the UK’s leading providers of Health & Safety, HR, Employment Law and ISO services to SMEs. HgCapital will assume majority ownership from ECI Partners, investing alongside the existing management team. The terms of this transaction were not disclosed.
HgCapital Trust plc will invest in Citation alongside other institutional clients of HgCapital, who will participate through the HgCapital 7 Fund. The Trust will contribute a total of approximately £10.5m. The acquisition of Citation represents the ninth investment by the HgCapital 7 Fund and the managers say that following completion the Fund will be approximately 60% invested.
Based on the 30 November 2015 reported NAV (including all announced transactions) HgCapital say that the HgCapital Trust’s liquid resources available for future deployment are estimated to be £38.8m (8% of the pro-forma 30 November 2015 NAV, excluding a £40m standby facility). The transaction will reduce the Trust’s outstanding commitments to invest in HgCapital deals to approximately £117m (24% of the pro-forma 30 November 2015 NAV).
Citation was established twenty years ago and provides professional regulatory-driven compliance services to over 16,000 clients across a range of specialist areas, including: human resources and employment law; health and safety; ISO accreditation; and staff training. The Company is headquartered in Cheshire and employs over 350 professionals. HgCapital say that the purchase fits its strategy of investing in leading technology enabled professional services providers in regulatory-driven and fast growing niches.
HgCapital purchases majority stake in Citation : HGT