Enterprise is a provider of key support services to utility companies and local authorities

Background
In May 2007, 3i acquired a majority stake in Enterprise in a deal that valued the business at €865m. Enterprise de-listed and 3i Partners Keven Parker and Ian Nolan joined the company's Board. Leading up to the transaction 3i had identified Enterprise as a unique business in the fast-growing Uk market for outsourced blue collar services. Enterprise's differentiated business model which uses bespoke IT systems and a direct service delivery model enables the business to deliver superior quality services at a lower cost than the competition.

Unlocking the deal
3i's network and experience of the business services sector were key to unlocking the deal. The investment team's ability to quickly understand and share management's vision for Enterprise, as well as help them build an ambitious growth plan, was critical to the eventual success of the process. The 3i investment team played an integral role in shaping Enterprise's strategy and business plan as well as leading both the fund raising and take-private process.

A unique operating model
Enterprise's success has been underpinned by two unique features. First, the company delivers complete transparency through a bespoke IT system, Works Manager, that enables everyone - including the client - to track the progress of a project at all stages. Second, Enterprise works closely with over 470 Direct Service Providers (DSPs) - small and medium sized business - that employ just over half of Enterprise's 10,000 strong workforce. The DSP franchises benefit from the central services offered by Enterprise, such as IT and HR and implement commitments to quality, training and safety. At the same time, the leaders of the DSPs enjoy the incentives that flow from being owner-managers.

Active Partnership
Keven Parker, Partner, 3i, highlights the market dynamics: "The UK outsourced maintenance market is growing strongly, driven by the need for improved efficiency. Enterprise is unique in this market through a combination of its excellent management team and differentiated operating model."

Owen McLaughlin, CEO, Enterprise, adds: "We wanted a partner with deep understanding of business services and 3i fitted the bill because it has a long track record of investing in the sector and understands the dynamics of the market. During the six months before 3i invested, we spent a lot of time working together on growth plans and evaluated the options for international expansion but concluded that our domestic markets hold all the opportunities that we need - not only through organic growth but also by acquisition."

Acquisition
Within two months of taking the business private, Enterprise acquired Accord Plc, a €285m EV business focused solely on public sector outsourcing. This allows Enterprise to achieve, in one single step, a transformation which was anticipated to be a four year organic process. The combined business has created the UK market leader in blue collar outsourcing of maintenance services and will generate c.€1.6bn of public sector revenues in the first year. 

Print this page