RSM advises on major carveout and sale of infrastructure division for leading construction firm

20 October 2021

RSM UK has advised Geoffrey Osborne Limited (Osborne) on the carve-out and sale of its infrastructure division, Osborne Infrastructure Limited to investment firm, Sullivan Street Partners.

The infrastructure division was part of Osborne’s family-owned business which was founded in 1966 and headquartered in Surrey. The division has worked on a number of large-scale projects in the South and Midlands with clients including Network Rail, National Highways and Transport for London.

Sullivan Street Partners is a private equity firm that invests in companies operating predominantly in the manufacturing and industrial sectors.

The deal supports both businesses long term strategic goals and allows Geoffrey Osborne Limited and Osborne Infrastructure Limited to prioritise growth within property development and infrastructure, respectively.

Osborne’s Board took the strategic decision to focus on its core activities and appointed RSM to advise on the carve-out and divestment of the infrastructure business. RSM’s specialist Divestiture Advisory team provided M&A services; the forecast model; supported the preparation of the carve-out financials (including advice on complex accounting areas and the preparation of a Financial Factbook Report); and supported the preparation and negotiation of the Transitional Services Agreement.

Once ready for sale, RSM’s Mergers and Acquisitions team identified suitable purchasers, negotiated all aspects of the deal and project managed to completion. Following a successful marketing process, Sullivan Street was selected as the partner for Osborne Infrastructure Limited and its management team.

The transaction was led by RSM UK’s corporate finance partner Kirsty Sandwell with support from Natalie Ord, Ollie Currie, James Underhill and Jack Bailey; and John Price (due diligence), Alistair Hynd (financial modelling) and Stella Cooper (financial reporting).

Andy Steele, Group CEO of Osborne, said: ‘This was a technically challenging disposal and finding the correct corporate finance team that understood that was essential; however, for us this was not just about simply finding a buyer for our Infrastructure business, as we cared deeply for our people who would be ultimately transferring into new ownership. Our goal therefore was to find a buyer who shared our passion for doing business in the right way and provided continuity in the values and behaviours familiar to our people and their customers. We thank RSM for helping us achieve all of these goals.

Kirsty Sandwell, Partner and Head of Transactions at RSM, commented: ‘Osborne is a well-established name within the construction and development sector and the success of their infrastructure division is testament to them. This carve-out will allow Osborne to focus on their core activities and represents a fantastic opportunity for both parties. I am delighted RSM’s multi-disciplinary team advised on the carve-out, supporting Osborne’s strategic goals to reinvest and become market leaders within the residential and education sectors. The success of this transaction reflects RSM’s expertise in advising clients from FTSE100 companies to entrepreneurial owner-managed businesses, with Divestiture Advisory a key part of our future.

Follow the link for more information on RSM’s Divestiture Advisory offering.