Deloitte advises on £32m MBO of Team Telecom Group

Business advisory firm Deloitte has advised Gresham, the UK mid-market private equity specialist, on the £32.8 million management buy-out of Team Telecom Group (TTG) from Spice plc.

The MBO, which is subject to shareholder approval, is led by TTG chairman Peter Burridge and group CEO Mike Norfield. The deal was funded by HSBC Leveraged Finance, which provided the supporting debt package.

Deloitte’s Birmingham-based corporate finance team, including Darren Boocock and Darren Hodson, were the lead advisers to Gresham.  Richard Edwards led the transaction support team.

The Gresham team comprised Paul Franks, Andy Tupholme, Gary Ward and Simon Inchley. Paul Franks and Ken Lawrence have joined the TTG board.

TTG comprises four different telecoms services businesses: Team Simoco, based in Derby; ComGroup, based in Victoria, Australia; Air Radio, West Drayton, Middlesex; and Indigo Telecom Group, based in Monmouthshire, Wales.

Team Simoco and ComGroup operate in the specialist Professional Mobile Radio (PMR) communications market, supplying radio terminals on an international basis for use by the emergency services, as well as companies in the oil and gas, transport and mining sectors, where cellular phone networks are inappropriate. The PMR market is currently worth around $3.8bn globally and is growing at around nine per cent per annum. Clients include the MoD, Anglian Water and Western Power.

Air Radio provides communications systems at airports to clients including British Airways, Servisair and BMI.

Indigo Telecom Group provides a range of engineering services covering installation, commissioning, line maintenance, network operations and project management to major telecommunications equipment manufacturers and telecoms network operators. The group operates across the UK and Europe, with its clients including Huawei, Interoute and Viatel.

Paul Franks, partner at Gresham who led the deal, said: “We approached Spice to see if they would consider selling TTG. Each of the businesses in TTG have compelling market positions in their own right and we are delighted to be investing in this global business. There is considerable growth potential in this area of telecommunications, both in the UK and overseas, and we look forward to working with TTG as they build the business over the coming years.”

Mike Norfield, CEO of TTG, said: “This is a very exciting time for TTG. We have a superb management team and have invested heavily over the past three years to develop market leading businesses and products. With Gresham’s support we intend to continue this investment and increase our international presence, both organically and by acquisition.”

Darren Boocock, corporate finance partner at Deloitte in Birmingham, said: “This is a significant transaction for Gresham in the Midlands and we are delighted to have been able to support them through the process.

“This deal will give a boost to the local M&A market and we’re pleased that we were able to play a part in it by providing Gresham with a full suite of transaction related services, including lead advisory, financial due diligence, tax and structuring advice.

“We look forward to supporting the management team in the future development of the business.”

The Deloitte lead advisory team comprised Darren Boocock, Darren Hodson, Chris Copland and Alex Silk. The transaction services team included Richard Edwards and Nigel Varley.

The HSBC Leveraged Finance team included Graham Young, Stuart Grantham, Chris Liddiard (Midlands Leveraged team), plus Guy Rothery and Dave Gregson (Yorkshire Corporate Banking team).

Peter McLintock and John Heaton from Hammonds provided legal advice to Gresham. 



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