Catalyst advise on sale of NB Real Estate to Capita plc

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Steve Currie (Catalyst) and Mike Hatt (CEO NB Real Estate)

Catalyst has acted for the shareholders of NB Real Estate on its sale to Capita plc for £20 million.

NB Real Estate is one of the largest outsourced commercial property services managers in the UK, providing services and advice to public and private sector clients who own or occupy property. These clients include fund management organisations, property investors, charities and large corporate owner occupiers such as the major high street banks and retailers.

Following an aborted sales process under another advisor, Catalyst were asked to work with the Board several years ago to develop a business plan that focussed on the key service offerings that would enhance shareholder value over the medium term. This involved a significant corporate reorganisation and the streamlining of the business to focus on the specialist services where the business had market leading positions.

Having successfully repositioned the business, the key challenge was to maximise shareholder value on the sale of the business, as well as the expectations of the fifty shareholders and options-holders that had previously experienced a high profile aborted sale to a competitor.

We decided to identify an acquirer seeking to enter the sector and correspondingly were able to achieve a strategic valuation whilst preserving confidentiality, ensuring that both financial and emotional objectives were met.

Capita Plc is a FTSE 100 company which specialises in business process outsourcing. It operates in over eight key market sectors which are local government, central government, education, transport, health, life and pensions, insurance, and other private sector organisations (including financial services).

Catalyst Partner Steve Currie, who led the deal advising the NB Real Estate shareholders commented, "This deal, as with our other recent deals, demonstrates our proven ability to attract sizeable multiples for shareholders when selling to a strategic trade buyer".