A London-listed supplier of fireside security providers backed by Lord Ashcroft, the previous Conservative Party treasurer, is exploring a sale of its largest division by gross sales in a transfer that would generate proceeds of about £650m.
Sky News has learnt that Marlowe is working with bankers at Rothschild on a evaluation of its testing, inspection and certification (TIC) division, which accounts for the lion’s share of its income.
City sources mentioned a course of to carry exploratory talks with potential bidders had received underway in latest weeks.
Based on latest transactions within the sector, a sale of the unit may yield a valuation of as much as 16 instances its annual revenue, equating to roughly £650m.
Insiders cautioned, nonetheless, {that a} sale would solely happen if bidders met administration’s expectations.
Marlowe was shaped as a money shell by Lord Ashcroft and Alex Dacre, and purchased its first working enterprise when it purchased Swift Fire & Security in 2016.
The one-time prolific Tory donor nonetheless owns about 12% of the corporate, price greater than £70m at Thursday’s closing share worth of 592p.
A sale of its TIC enterprise would successfully represent a break-up of the group and go away it to deal with its higher-margin operations in areas akin to compliance software program.
A spokesman for Marlowe declined to remark.
The potential sale of its testing and inspection arm comes amid a frenetic interval of company exercise throughout the sector in Europe.
Numerous buyout corporations are reportedly circling Applus, a Spanish-headquartered firm working in an identical area.
Sources say that Isquared Capital, an infrastructure investor which collectively owns the short-term energy enterprise Aggreko within the UK, is making ready to launch a bid for Applus as quickly as subsequent week.
Any provide could be more likely to worth the corporate at roughly €2.2bn together with debt.
Isquared is reportedly working with TDR Capital, the non-public fairness group with which it owns Aggreko, on its bid.
Advisers at Bank of America, Goldman Sachs and Morgan Stanley are mentioned to be concerned with the possible provide.
Apax and Apollo Global Management have additionally been reported to be inspecting bids for Applus.
Isquared declined to remark.
Content Source: information.sky.com