Pegasus Security is a national provider of manned guarding and electronic security services to high profile, private and public sector clients.
Primary were introduced to a management team who had had previous success in building a sizeable security services company. They had identified Pegasus Security as a good buy-in opportunity. Pegasus was then owned by five individuals who were looking to retire but had no succession plans within the business. We supported the incoming management team in a management buy-in of the business in May 1998.
The Big Idea
Whilst the security market is often seen as commoditised and price sensitive, we believed that there was an opportunity to build a substantial security group focussed on providing a premium quality service to predominantly large, high profile, security conscious clients. Pegasus had already begun to attract a high quality customer base and the incoming management team had aggressive plans to expand this into a national footprint.
The Grand Plan
We worked with the new management team to focus on developing operational excellence in execution, on a culture of absolute professionalism and a highly recognised premium brand. This approach, together with the development of full national coverage, helped the company to acquire a number of prestigious clients including The Home Office, Foreign and Commonwealth Office, DTI, Inland Revenue and Scottish & Newcastle. Turnover grew more than threefold during our ownership and staff numbers grew to 1,500 nationwide.
The Bottom Line
The company was sold to ISS in January 2006 to form the basis of their UK security operations, generating a return of 5x our original cost of investment.
Date of Investment: May 1998
Deal status: Realised
Date of realisation: January 2006
Investment return multiple: 5x cost
For more information talk to: Neil Wallace or Peter Jacobs