Cabot Square Capital has acquired a majority shareholding in Chartway Group, one of South-East England’s leading partnerships-based housebuilders.
The investment is being made by Cabot Square’s existing portfolio company Public Sector Plc (PSP) to create a new merged Group.
PSP is a specialist strategic asset manager that partners with public and private sector bodies to add value to land and property assets as well as deliver positive ESG outcomes for local communities.
The investment will support the strategic growth of the Chartway Group.
Independently owned for over 25 years, London-based Cabot Square is a specialist mid-market buyout firm investing in European growth companies with a particular focus on businesses that generate attractive asset-based returns as well as positive ESG outcomes.
Cabot Square recently acquired Premier Modular, a leading provider of modular leasing and permanent solutions predominantly for public sector end markets, shortly thereafter creating the Premier Modular Group by adding to it their existing investment in NetZero Buildings.
Keith Maddin, Partner at Cabot Square, said: “Chartway Group is a leading South-East England based partnerships housebuilder with turnover in excess of £100 million and a track record of growing profitability year on year since they were established in 2009. We particularly like their capital-light and vertically integrated business model as well as the opportunity to help address the shortage of low carbon energy efficient housing. Their ability to work across all tenures of housing means they are well placed to adapt to changing market conditions over time”
“The new Group is well positioned to benefit from a number of attractive growth opportunities including synergies between the two businesses. Together they can build a high margin and high return on capital asset-based UK business that can also benefit all stakeholders.”
Ian Savage, Chartway Group founder, steps up to become Chairman and along with a number of the Chartway senior executives, will remain a significant shareholder. Steven Cresswell, who joined Chartway from Thakeham Group, will become the new Group Chief Executive with Paul Brown, Chief Executive of PSP, continuing to run the strategic asset management business.
Ian Savage said: “We are very pleased that Cabot Square has recognised Chartway’s progress to date and their investment and platform building experience will help us continue in our next phase of growth. This also represents a fantastic opportunity for our staff and customers.”
Steven Cresswell and Paul Brown added: “We are excited to be working together and see significant synergies between our organisations. Chartway can add to PSP’s delivery capabilities and PSP will be able to help Chartway expand its relationships with the public sector.”
Advisers to the transaction included KPMG (sellside M&A), Stephenson Harwood (sellside legal), Herbert Smith Freehills (buyside legal), BDO (FDD/TDD), Savills/Mace (CDD) and EY (debt).
Acquisition debt funding was provided by Pricoa Private Capital.
Jack Gilbert, Vice President at Pricoa, said: “We’re delighted to be once again partnering with Cabot Square in a sector we have been a long-term finance provider to and see Chartway as particularly well placed”.