Sovereign successfully exits accident management services provider Kindertons for 8x money

Sovereign Capital Partners, the UK private equity Buy & Build specialist, today announces that Kindertons, its nationwide specialist provider of outsourced accident management services for motor insurers and insurance brokers, together with claims management services, is to be acquired by ExamWorks, a portfolio company of Leonard Green & Partners. Completion is subject to change of control consent by the Financial Conduct Authority and the Solicitors Regulation Authority. The exit will deliver a gross return of 8x and a 73% IRR to investors.

Sovereign originally completed the management buy-out of Kindertons in October 2013. With Sovereign’s strategy of Buy & Build, Kindertons:

• completed four strategic acquisitions: Motorbike specialist Plantec in 2013; taxi credit hire expert Sovereign Automotive in 2016; niche credit hire provider Platinum Assistance in 2017 and specialist accident management provider Crusader Assistance in 2018
• more than doubled its fleet to c.5,300 vehicles
• grew the number of employees from 450 to over 1,000
• delivered very strong organic growth increasing volumes, revenue and profitability, all by 30% p.a. resulting in EBITDA growing three-fold from c.£7m to c.£20m.

Sovereign worked closely with the management team to appoint Jon Walden as chairman, at the time of the original MBO to help grow Kindertons, and Neil Cunningham as CEO, in early 2016 to support founder succession. Sovereign also worked with the team to develop Kindertons’ brand positioning, operations, sales and finance function.

Today, Kindertons is one of the largest, independent specialist credit hire providers in the UK, managing the full claims handling process on behalf of insurers, insurance brokers, motor dealers, garages and bodyshops, as well as providing replacement vehicles and managing the recovery, repair and storage of damaged vehicles.

Neil Cox, Partner, Sovereign Capital Partners, said: "We are delighted to have partnered such a strong management team and business which provides a high-quality and valued service to its introducers and motorists. Kindertons has developed in both scale and service offering throughout the time of Sovereign’s partnership. We wish the team every success for the future."

Neil Cunningham, CEO, Kindertons, said: "Sovereign has been a highly supportive partner that has provided both the investment and expertise to help the Group go beyond all our expectations. We worked together to deliver a buy and build growth strategy, successfully completing four acquisitions and simultaneously investing in the business to support exceptional organic growth. We look forward to continuing to take the business from strength-to-strength."

Shaun Ellison, Founder, Kindertons, said: "Sovereign delivered exactly what they said they would at the time of the MBO in 2013. It has been an enjoyable journey since then made easier with the level of support and help Sovereign have provided over that time. I look forward to seeing the business continue to develop over future years."