Sovereign Capital completes 7th investment of 2004 with the acquisition of Pelcome Training

Sovereign Capital, the independent lower mid-market UK private equity provider, announces that it has completed the buy-in / management buy-out (BIMBO) of Pelcombe Training Limited ("Pelcombe") for an undisclosed sum.

Sovereign Capital has supplied funds to support the BIMBO and to finance the strategy for organic growth. HSBC Specialised Financing in Birmingham has provided the debt.

Established in 1968, Pelcombe is a provider of training and employability programmes to both Government and the private sector. The company operates 35 training centres across England and employs over 180 people. The new funding will support the continued successful growth of the business.

Sovereign worked with the vendors for over a year as part of the company's succession planning and has enhanced the management team with the appointment of Larraine Boorman as Managing Director who has 15yrs experience at a senior level in the industry; Steve Brown, Finance Director; and Richard Martin, Chairman, previously Chief Executive of Adecco UK. Richard is also Chairman of NHS Professionals. Ryan Robson and Simon Hitchcock of Sovereign Capital have joined the Board

Sovereign Capital is the largest UK owner of independent mainstream and special educational needs schools. This investment in Pelcombe broadens Sovereign's area of activity within the education and training sector.

Ryan Robson, Partner, Sovereign Capital commented:

"We are delighted that Pelcombe is joining our growing portfolio of education and training businesses. The enhanced management team is strong and we are looking forward to working with them to develop Pelcombe into a leading provider in its market."

Larraine Boorman, Managing Director, Pelcombe commented:

"Pelcombe is a focused and efficient business with a commitment to quality and 'Best Practice'. I am looking forward to developing Pelcombe's service offering and building upon the company's market share. I expect Sovereign Capital to be active partners as we develop the business."