Cobbetts LLP's corporate team has advised investment bank, Numis Securities, as nominated adviser and broker to AIM-quoted private equity investment company EPE Special Opportunities plc (ESO), on ESO’s acquisition of a majority interest in the portfolio of private equity investments held by The Equity Partnership Investment Company Plc (EPIC), in a £22 million reverse takeover. 

Corporate partner, Daniel O’Gorman, led the deal team for Cobbetts.

The transaction, which completed on 31 August 2010 following the approval of shareholders of both ESO and EPIC, comprises:

● the transfer of certain private equity investments held by ESO to a new limited partnership majority owned by ESO (the Fund);

● a £10 million cash investment in the Fund by a company established by European Secondary Development Fund IV, LP;

● the acquisition by the Fund of the EPIC private equity portfolio for an aggregate consideration of £22 million comprising the issue of shares and loan notes in ESO and the payment of £10 million in cash.

ESO is a private equity investment company focused on investing in small and medium sized companies in the United Kingdom. ESO’s investments in retailers include Whittard of Chelsea and Past Times, and in Lancashire-based textile-supplier, Morada. 

The acquisition of the EPIC private equity portfolio by the Fund provides ESO with the opportunity to acquire an interest in a mature portfolio of private equity assets which includes electrical accessories manufacturer and distributor, Nexus, electrical retail and wholesaler, Ryness, and Leeds-based online pharmacy business, Pharmacy2U.

Cobbetts corporate partner, Daniel O’Gorman, said: “We were delighted to advise Numis Securities on a transaction which enables EPE Special Opportunities plc to acquire an interest in a diversified portfolio of investments, increasing the scale of the company and with the potential to enhance returns to shareholders.”