PRIVATE equity firm Carlyle Group is buying UK testing and inspection company Velosi for about £87.8m, paving the way for Velosi to expand into new markets.
Carlyle’s testing and inspection company Applus+ has made the 165p per share offer for Velosi, which supplies quality control services to oil and gas companies. The price per share represents a 61 per cent premium to Velosi’s closing price on Wednesday.
Malaysia-based Velosi, which operates in 39 countries in Asia, the Middle East, Africa, Europe and North America, has customers including BP, Exxon Mobil and Royal Dutch Shell.
Carlyle’s Applus Technologies, which serves energy industry clients in Europe and South America, may restructure AIM-listed Velosi and turn it into one of its own businesses after the deal closes.
“As a result of the acquisition, the Applus+ Group will have reinforced its presence in emerging markets and broadened its service portfolio to the energy industry,” Carlyle said.
Velosi’s independent directors have recommended Carlyle’s offer and investors representing about 53 per cent of Velosi shares have accepted it.
JOHN Llewellyn-Lloyd, the head of corporate advisory at Execution Noble, advised Carlyle on the acquisition of Velosi.
After graduating from Oxford University, Llewellyn-Lloyd qualified as a barrister in 1984.
He joined Hill Samuel Merchant Bank and became head of corporate finance and a member of the bank executive committee.
The team moved to Close Brothers and Llewellyn-Lloyd became chief executive of the enlarged corporate finance group and founded its international business.
He was also an executive director of Close Brothers Group.
He joined Noble in 2002 and since 2003 has led the development of Noble into a growth market investment bank.
At Execution Noble he heads up M&A. He has been involved in deals involving bookmaker William Hill, pub group Pubmaster, Brent Walker and brewer Scottish & Newcastle.
Llewellyn-Lloyd said the acquisition of Velosi would open up opportunities for Carlyle and Applus+ in the oil and gas sector.
“It’s a pretty attractive strategic deal for them,” he said.
“It gets them into a new business area and gives them much broader geographical coverage.”