Our initial investment was into IGG Holdings, a UK provider of laboratory testing services for the space industry. IGG had been under prior private equity ownership but had underperformed and was in revenue decline.
Root Capital’s initial focus was on reducing costs and establishing a more commercial culture in sales and marketing in order to build the pipeline and reverse revenue decline. After successfully achieving this and getting the business back to profit, our analysis of the competitive landscape showed us that there was a very attractive roll-up opportunity.
Over the next several years we acquired or merged with three direct competitors in Spain, Italy and France, producing a European powerhouse in the satellite electronic component testing sector. We achieved significant cost synergies by consolidating laboratories and combined revenues of more than €60 million.
We sold the newly christened Alter Technology Group to TUV Group in Germany for an undisclosed sum, giving a significant return on investment to Root Capital.
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Root Capital LLP, a limited liability partnership incorporated in England with Partnership No. OC303937, authorised and regulated by the Financial Conduct Authority. Firm reference number – 223785