DH Private Equity Partners, the European private equity firm, has today announced that its fund, DH V, and other shareholders have agreed to sell their entire stake in TMF Group, a leading provider of high value business services to organisations globally, to funds advised by CVC Capital Partners for €1.75bn. The transaction is expected to close in the first half of 2018 subject to regulatory approvals.
TMF Group was formed by the June 2011 merger of TMF and Equity Trust. DH Private Equity Partners acquired TMF in October 2008 and subsequently completed the transformational acquisition of Equity Trust in January 2011. The merger delivered significant cost synergies and generated cross selling opportunities to support organic growth.
Historically, the majority of TMF’s revenues were generated in Europe, where the company had a long-established, strongly competitive position. During DH Private Equity Partners’ ownership, through a combination of new greenfield sites and 32 acquisitions, TMF Group has built out its presence in other parts of the world and, as a result, now offers a unique global platform. By the end of 2016, revenue and EBITDA had grown by 148% and 131% respectively since DH Private Equity Partners acquired the business in 2008.
The sale of DH V’s stake in TMF Group represents the seventh successful exit from the fund, with one further asset remaining before the fund portfolio is fully realised.
Commenting on the transaction Dick Hanson, the Senior Partner of DH Private Equity Partners and Chairman of TMF Group, said: “We are very proud to have supported TMF as it has developed into a truly global integrated services platform supporting multinational and local organisations. In our time of ownership, we have worked closely with the company, supporting its acquisition strategy and helping to grow its revenues, profits, international footprint and employee base. We have had a very strong partnership with the management team, led by Frederik van Tuyll, and wish the company well under new owners.”
Frederik van Tuyll, CEO of TMF Group, added: “We have enjoyed an outstanding relationship with DH Private Equity Partners which, since acquiring us, has made a significant contribution to our growth. We have a unique global platform, exceptional talent, and a diverse client base that gives us every confidence that the coming years will be as successful as those previously.”