Sovereign supports LPM in its acquisition of InterCity Group

Sovereign Capital, the UK private equity buy & build specialist, today announces the acquisition of InterCity Group Limited ("InterCity") as a bolt-on for LPM Group ("LPM") as part of the Group's ongoing buy & build strategy.  Based in Manchester, InterCity provides contract cleaning, security and ancillary services to commercial offices, industrial sites and food production facilities in Manchester, Cheshire and the Midlands.

InterCity has grown since its formation in 2004 into a £8m turnover business employing 700 staff who provide a range of office cleaning, industrial cleaning, food hygiene and manned guarding services to 160 customers spread over 350 sites.  Customers range from industrial firm JCB, to estate agent Savills and food company Dairy Gold.

InterCity is the third buy & build transaction for LPM, a leading provider of contract cleaning, security and maintenance services.  LPM acquired Leeds-based Dependable, a cleaning, janitorial sales and washroom business in September 2007 and quickly followed this by recruiting an experienced, high calibre team for Axis, its security subsidiary in November 2007.

Commenting on the transaction, Ryan Robson, Managing Partner at Sovereign said: "InterCity's service offering provides an excellent fit with LPM and enhances the Group's regional coverage through its significant operations in the North West.  The experienced management team brings strong customer relationships and the potential to diversify LPM's existing service portfolio with InterCity's successful expansion into the food processing and production market."

David Howroyd, CEO of LPM, added: "InterCity is a highly regarded business known for its high quality service, as evidenced by its blue chip customer base.  The acquisition strengthens LPM's presence in the North of England and provides the next key step towards building our national coverage."

The enlarged LPM business now has a combined turnover of over £35m.  LPM will continue to grow organically and, in addition, Sovereign is in negotiations with a number of further targets to develop the group's national coverage.