Gresham backs the £12m BIMBO of PIMS Services Ltd

Gresham today announces that it has backed the £12m buy-in management buy-out (BIMBO) of PIMS Services Ltd, a support services business offering installation and maintenance of sewerage and drainage pumps.

PIMS, which is based in Farnborough, is involved in the sale, installation and service of submersible pumps for water sewerage and drainage systems. The company was established in 1972 and now has over 100 employees, servicing clients nationwide in the water, construction and retail sector including Thames Water, Barratt Homes, Tesco and Sainsburys.

The UK market for pump sales, installation and service, including non-sewage and drainage sectors is estimated to be worth approximately £1bn in 2004. Demand for new housebuilding in the UK, especially in brownfield sites where a pumping station is more likely to be required, continues to drive significant growth in this sector. PIMS has a strong track record of revenue and profit growth over the past five years and is well positioned to exploit the expanding market.

Charlie White, whom Gresham previously backed in the MBO of Penny and Giles, is leading the BIMBO and will become managing director of PIMS. Penny and Giles designed and assembled paperless chart recorders and was sold to Honeywell in 2000 achieving a return of 2.3x money for Gresham.

White has been working as business development director within PIMS for six months. A new finance director, Chris Backhouse, also joins the business. They will complement an experienced existing team within the business who form the buy-out element of the transaction.

PIMS MD Charlie White said: "It is very exciting to be working with Gresham again. Their backing gives us the opportunity to build on PIMS' strong reputation for excellence in customer care and to exploit our nationwide presence."

Gresham director Paul Canning who led the deal said: "We are delighted to be funding the BIMBO of PIMS. We are backing a highly experienced and proven management team in a market which we believe has great potential."

Paul Canning and Alastair Mills worked on the deal for Gresham. Ian Paterson of Grant Thornton and David Raff of DLA advised Gresham on financial and legal issues. Robin Illingworth of PMSI Consulting provided commercial due diligence to Gresham. Management were advised by Simon

Davies and Andrea Errington of Tenon Corporate Finance and Sean Wright of Shoosmiths. Paul Russell of BDO Stoy Hayward, Guildford, advised the vendor and introduced the deal to Gresham. Bank debt was provided by HSBC led by Ian Crompton.