LPM completes fourth bolt-on to expand security division

Sovereign Capital, the UK private equity Buy & Build specialist, today announces the acquisition of Temple Security Limited ('Temple') as the fourth bolt-on for LPM Group Limited ('LPM'), a leading provider of contract cleaning, security and maintenance services.  This transaction represents an important step in LPM's ongoing Buy & Build strategy and provides critical mass to the group's security offering.

The Temple acquisition augments LPM's security subsidiary, Axis, to create a top 20 national security provider enhancing sales opportunities for the division, across both manned guarding and electronic security services, to commercial, retail and local government clients throughout the UK.

Formed in 1997, Temple has built strong relationships across its 350-strong customer base, generating revenues of £20 million. The business covers the whole of the UK from control centres in Hounslow in the South of England and Rotherham in the North.

Sovereign's sector knowledge allowed it to identify and recruit an experienced, high calibre team for Axis in November 2007.  Having also developed a strong relationship with the Temple business over four years, Sovereign is delighted that LPM can now combine Temple's national infrastructure with the Axis team expertise.

Over the past two years, Sovereign and LPM management have grown the overall group, both organically and through acquisition, to create a business that now employs over 3,000 people nationwide, generating revenues in excess of £55 million.

Sovereign's strong track record and relationship with Clydesdale Bank enabled funding to be secured for the Temple transaction, despite the challenging credit conditions. Having previously recapitalised the LPM Group in November 2008, Clydesdale supported the acquisition of Temple with a £7 million funding package. 

Mark Williams, Investment Manager, Sovereign Capital said:

'We are delighted to have completed the acquisition of Temple which is an excellent fit with LPM's existing security operations.  This transaction will not only provide LPM with greater market presence but will enable the enlarged group to further develop its integrated service offering by cross-selling advanced security services alongside its established cleaning business.'

Jonathan Levine, Managing Director, Axis Security Services Limited added:

'We look forward to welcoming Temple into our team.  With over 800 guards, the transaction provides significant scale to our security operations, allowing us to gain market share in this growing, recession-resilient sector.'