Transaction Details

February 19, 2016
London

Sector

Industrials and Industrial Technology, Business Services

Deal Type

M&A

Deal Value

£85m

Deal Team

Stephen Georgiadis, Tim Richardson, Declan O’Connor

Altium advises Cathexis on its hostile takeover of ISG

Altium acted as exclusive financial adviser to US investment group Cathexis on its £85m hostile takeover of AIM listed ISG plc. The transaction is the fourth UK public company takeover Altium has advised on in the last twelve months.

ISG, previously known as Interior Services Group, is an AIM-listed, UK-based construction services company engaged in providing fit-out, refurbishment, engineering, design and project management services to customers across the world. In the year ended 30 June 2015, ISG reported an underlying operating profit of £8.5m on revenues of £1.6bn.

Cathexis has been a significant shareholder in ISG for a number of years and owned 29.5% of ISG’s shares prior to its offer. Cathexis announced a hostile cash offer for ISG on 11 December 2015 which was not, initially, recommended by the ISG Board. However, having increased its offer, triggered the conditions for a mandatory offer pursuant to the Takeover Code and by making substantial acquisition of further ISG shares in the market, Cathexis declared its offer unconditional in all respects on 17 February 2016.

William Harrison, CEO of Cathexis, said: “Cathexis is a long-standing supportive shareholder in ISG. Under our stewardship, we believe the company has a strong future and we are very pleased to have completed this acquisition. Altium’s strategic and tactical advice, its management of the transaction and its knowledge and application of the Takeover Code were invaluable to us.”

Stephen Georgiadis, Managing Director at Altium, said: “We are delighted to have assisted Cathexis in consolidating its control of ISG. The stability provided by the commitment of a well-funded reference shareholder like Cathexis should ensure a strong and promising future for ISG.”

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