Develop Training (“Develop”), a leading provider of training services to the utility sector, has undergone a £15 million management buy-out in a deal backed by Barclays Ventures.
Clearwater International advised the four-strong management team on the deal and HSBC Leveraged Finance provided acquisition debt facilities. Develop has training centres in York, Derby, Swindon, Glasgow, Bradford, Warrington and Whitwell, near Oakham. It is the market leader in the provision of training to the water and gas industry, and also serves clients in the rail, electrical, mechanical and building services fields. Many of its courses are obligatory for clients to meet health and safety standards. With turnover of c.£16 million Develop is a leading technical training supplier to organisations such as National Grid, Anglian Water, the Ministry of Defence, Thames Water, British Telecom and NHS Estates.
The buy-out gives control of the business to Cheryl Foreman, previously managing director and now chief executive, sales director Russell Coleman and finance director Simon Duckworth. The previous owner and chief executive, Stephen Cowell, has also retained a shareholding and becomes executive chairman. Develop started life as the commercial arm of Northumberland Training and Enterprise Council (TEC), of which Stephen Cowell was chief executive. With the government’s decision to close down TECs, Cowell led a MBO of the business in 2002 with backing from NVM Private Equity.
HBJ Gateley Wareing in Birmingham advised Newco and the management team. DLA Piper in Birmingham provided legal advice to Barclays Ventures, while Pinsents acted for HSBC, and Muckle LLP of Newcastle acted for the vendors.