RMB Corvest has realised significant returns in exiting the Servest Group, demonstrating its expertise internationally.
RMB Corvest is a preferred PE partner, commanding an authoritative track record in the field and enjoying the diverse skills of an experienced executive team. “Our emphasis is on establishing long-term partnerships,” notes Mike Donaldson, CEO: RMB Corvest. “These partnerships are stable, supported and profitable.”
The success of this approach is evidenced by RMB Corvest’s steady exit from the Servest Group after a sustained investment period, generating superior returns. “In 2006, RMB Corvest alongside a BEE player acquired a significant minority stake in Servest South Africa,” outlines Donaldson. “The transaction considerably strengthened the company’s BEE credentials, whilst management assumed control of the business.”
Servest South Africa then actively supplemented organic growth via acquisitions, including two RMB Corvest portfolio investments in the building services sector, namely Industrial Health Services and Plants At Work. “These, and various additional investments, ensured a broader diversified portfolio for Servest – building the brand as a truly African multi-services facilities management business,” says Kenton Fine, Group Chairman: Servest.
Recognising the potential in taking the Servest South Africa model offshore, a service portfolio was actively built in the UK via acquisitions. “In 2007 Servest South Africa and RMB Corvest acquired a controlling interest in a small niche cleaning business which later formed the platform for the expansion of Servest UK,” explains Kenton Fine. “Subsequently, RMB Corvest assisted Servest UK to acquire auxiliary cleaning businesses servicing the commercial and public sectors.”
Later acquisitions broadened operations into security, catering and building services, transforming Servest UK into a comprehensive multi-services facilities management provider.
A decade after its initial investment, RMB Corvest began a steady exit from Servest, commencing with the sale of its equity in Servest South Africa to a local BEE player, having achieved a remarkable gain. “The South African exit transaction in 2015 summarises our investment vision in being exceptionally beneficial to all parties,” notes Martin Coetzee, director: RMB Corvest. “The sale positioned Servest South Africa still more strongly in the market and achieved the purchaser’s aspirations to expand their local and continental footprint in the facilities management sector, whilst realising significant return for RMB Corvest.”
Three years later, during 2018, RMB Corvest then exited its investment in Servest UK through a notable sale to a major European facilities management business. The transaction concluded RMB Corvest’s involvement with the Servest brand. “This very successful exit was precisely the looked-for outcome of our creation of Servest UK, and our growing that business and was achieved through the strategic initiatives spearheaded by Kenton Fine,” notes Donaldson.
In the twelve years since RMB Corvest co-funded the formation of Servest UK, the business delivered compound profit growth of 26% per year. Moreover, through RMB Corvest’s acquisition skills and strategic guidance, coupled with the proficiency of the Servest UK management team, an exit value of £540million was achieved.
“RMB Corvest has demonstrated its skill and expertise, both locally and offshore, in aggressively growing companies through acquisitions – as per our very successful ‘build and grow’ strategy for the Servest Group,” says Donaldson.
RMB Corvest is an on-balance sheet provider of private equity for mid-sized management buy-outs, leveraged buy-outs, development capital and funded BEE solutions.
For more information go to www.rmbcorvest.co.za