Arbuthnot Commercial ABL supports Inspirit Capital’s acquisition of MPS from Capita Plc in corporate carve-out deal

ACABL structured and delivered a comprehensive solution to meet the funding requirements of the transaction within a time-critical completion deadline. The facility consisted of a cash flow loan to support the initial purchase consideration and a revolving funding line to optimise ongoing working capital.

MPS comprises the Capita businesses previously known as Capita HR Solutions, Capita Resourcing, and ThirtyThree. Following completion, Capita HR Solutions will be rebranded as Conexia and Capita Resourcing will be rebranded as Peregrine. ThirtyThree will continue to trade under its market-leading brand. The holding company will be called Aquest.

The three businesses help their customers recruit, train, deploy, and develop their workforce. They have over 2,000 multinational corporate, SME, and public sector clients operating across a wide variety of industry sectors. With operations in the UK and the US, the business employs over 1,000 employees.

Arbuthnot Commercial ABL has previously provided funding to two other Inspirit Capital portfolio companies, Pelta Medical Papers and Procam Take 2.

Commenting on the transaction, Will Stamp, Founding Partner at specialist private equity sponsor, Inspirit Capital, said:

“This was a complex transaction with many moving parts, and we had to move quickly. When selecting a lending partner, our top priorities were commerciality and deliverability. We value these qualities highly because we must present a proposition to the vendor that we know can be executed successfully.

This engagement builds on our prior collaboration with Arbuthnot Commercial ABL on two portfolio businesses, making it a repeat basis deal. However, once again, this deal had a firm deadline, and Arbuthnot delivered on their promises. We are extremely pleased with the outcome achieved and anticipate excellent growth prospects as the management team strengthens existing relationships with their stellar customer base."

Andrew Rutherford, Commercial Director, Arbuthnot Commercial Asset Based Lending, commented:

“We are delighted to have had the opportunity to work closely with Will Stamp at Inspirit and the management team at Capita to complete this complex corporate carve-out deal. We were impressed by the profitability of the company and the strong management team that had transitioned from Capita Plc. With Inspirit’s backing and its strong EBITDA, cash-generative operations, and highly experienced and effective management team, we have confidence in the potential for continued success.”

Nick Grainger, Partner, FRP Advisory added:

“Trust is crucial in facilitating the smooth execution of complex transactions, such as corporate carve-outs. In this deal, the strong pre-existing relationship among the three main players, Inspirit Capital, Arbuthnot Commercial ABL, and FRP Advisory, proved to be a key factor in streamlining the process and enhancing the overall execution to achieve a defined completion date. By working alongside our respective teams, Inspirit Capital had the assurance of being able to focus on the deal rather than the debt.”

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Registered in England and Wales no. 10915339. Arbuthnot Commercial Asset Based Lending Limited’s registered office is Arbuthnot House, 7 Wilson Street, London, EC2M 2SN. Arbuthnot Commercial Asset Based Lending is not authorised and regulated by the Financial Conduct Authority.

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