Hg Capital, which owns a 59% stake in JLA, has detailed that the servicing giant has delivered organic sales growth of between 7-9% year on year.
Describing the performance as “consistently strong”, Hg Capital’s 2015 Annual Report stated that JLA’s sales doubled between 2009 and 2015 to £102m.
Over the same period, EBITDA increased from £17m to £28m, a compound annual growth rate of 12%.
Catering equipment now represents a third of JLA’s overall revenues.
“We worked alongside management to increase the benefit of selling new products and services through JLA’s existing sales force and service network,” stated the investment firm.
“A number of projects have been initiated covering strategic planning, customer retention and pricing.
“In addition, management has been strengthened and ten small bolt-on acquisitions of smaller laundry and kitchen equipment companies have been completed, all funded out of free cash flow.”
Last December, Hg Capital completed the recapitalisation and the sale of a minority interest in JLA to a group of institutional investors, returning £116m to Hg Capital 6 clients, including £17.3m of cash proceeds to its Trust.
These transactions, together with previous realisations, took the total cash return to 1.8x the original investment. The combined return represents an investment multiple of 3.5x over JLA’s holding period to date.
Hg Capital originally acquired JLA in March 2010, valuing the company at £150m at that time.