Deals bonanza hope as buyout barons move in on top UK bailiff

HOPES of a bumper year for City deals have been given a lift after it emerged that a slice of one of Britain’s biggest bailiffs is on the verge of being sold to a private equity firm.

City sources said Inflexion, the buyout firm that previously invested in fashion retailer Jack Wills, secretly agreed late last month to buy a shareholding of about 45 per cent in Marston Holdings from investment firm ICG.

It would value the ‘enforcement agent’ at between £600million and £700million – which would make it the largest deal to complete so far this year when it is finalised.

The Mail on Sunday understands that Inflexion conducted the deal through a subsidiary fund called Partnership Capital, which specialises in buying minority shareholdings in private companies.

Marston employs about 1,200 people and works for magistrate courts, Revenue & Customs and local government to recover unpaid tax and motoring fines.

Recently Marston has expanded into car emission monitoring and parking tickets, which now account for more than 65 per cent of the company’s revenues. One source described the business as a ‘mini Capita’.

The debt recovery division processes 1.5 million cases and recovers £500 million a year, according to the company’s website.

Inflexion previously owned the business before selling it to ICG in 2016. Inflexion also recently bought back another company it previously owned – Aspen Pumps – for about £250million from Londonlisted private equity investor 3i.

The Marston deal comes as the City of London grinds back into life following the General Election and the Christmas holidays.

Analysts said the Marston sale could signal the beginning of a fresh dealmaking boom following the election of a Conservative majority government.

Investors are also expecting a flurry of flotations as stock markets experience all-time highs amid low volatility.

Sources said Advent International – the private equity owner of defence group Cobham – is likely to push the button on a £2billion flotation of Rubix in the next few weeks with a view to making the formal listing announcement in the next couple of months.

Cheshire-based Rubix repairs machines and provides toolkits for multinational corporations, such as Coca-Cola, Procter & Gamble and Cadbury owner Mondelez.

Rubix was formed from the combination of Brammer – which Advent bought in 2016 – and Francebased peer IPH.

It is believed that Rubix, which employs about 8,000 people, is likely to float with a valuation of between £1.5 billion and £2.5 billion, making it one of the biggest London stock market listings of the past 12 months.

Meanwhile, smart meter installer Calisen Group may be the first company to go public in 2020 after last week announcing its intention to list.

The company, backed by American buyout giant KKR, is looking to raise £300million from investors at a valuation of around £1.5billion.

Calisen Group installs and manages meters on behalf of energy suppliers, recouping the upfront costs through long-term rental agreements. It owns about 4.7million smart meters and 3.5million traditional meters.

Inflexion and Rubix declined to comment.