CANADA/UK - The Ontario Municipal Employees Retirement System (OMERS) has signed a deal to acquire Scotland-based shipping services company V.Group for $520m.
The acquisition of V.Group from Exponent Private Equity was completed by the London office of OMERS Private Equity, which opened in September 2009 to build a mid-market private equity presence in Europe.
V.Group provides outsourced ship management, crew provision and other marine services. The company manages the running and maintenance of over 700 vessels on behalf of its customers and and other third party vessels. It operates across 34 countries and from 70 offices around the world.
"I look forward to partnering with OMERS Private Equity in continuing to build a market-leading company delivering outstanding service and value to our customers," said Clive Richardson, who will continue to lead V.Group as CEO. "V.Group has a tremendous future and the management team is excited to be working with our new partners in the next chapter of growth for our business."
OMERS PrivateEquity European senior managing director Mark Redman added: "V.Group has an attractive and differentiated outsourcing-based business model and is led by an exceptional management team. We believe V.Group's extensive global network, track record of profitable growth, compelling customer value proposition and breadth of services provide significant long-term potential.
"As a global leader operating in robust and growing segments of the market, we believe the future opportunities for V.Group are extremely attractive. We look forward to using our significant financial resources and extensive international network to support management's strategy for organic and acquisitive growth, particularly in emerging markets."
OMERS Private Equity expects to close the transaction by early September 2011. The management team of V.Group is expected to be a significant investor in the business through continued equity ownership.
Financing will be provided by RBC Capital Markets. RBC acted as financial advisor, and Weil, Gotshal & Manges acted as legal counsel for the buyers.
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