Bridges exits community-focused services business Nexgen to Bidvest

Arrowpoint Advisory’s Business Services sector team has advised Bridges Fund Management, the specialist impact investor, on the sale of the Nexgen Group to Bidvest Noonan, the international provider of facilities services, including security, cleaning, and front-of-house solutions.

Bridges invested in Just Ask – a family-run ESG-driven facilities services business that worked primarily with UK housing associations – in 2017. Bridges worked with the founders to support their transition out of the business, building a high-calibre new management team led by CEO Mark Little, CFO Gordon Peattie and Chair Jon Andrew to take the business through its next chapter of growth.

The team spearheaded five bolt-on acquisitions that collectively transformed the scale and scope of the group, extending its core sectors beyond social housing into a range of community-focused markets including education and healthcare. The integrated business - re-named the Nexgen Group in early 2023 - is now one of the few scaled facilities services platforms in the UK and remains the market leader in its core social housing market.

The business has retained its focus on ESG and social value which is an important differentiator when bidding for public sector and social housing contracts. Nexgen is committed to improving local communities, through a relentless focus on quality service and by providing employment opportunities for local people. Thanks to its proactive recruitment efforts, about a third of delivery staff are recruited from the social housing neighbourhoods in which it operates.

The group is also focused on supporting people out of long-term unemployment (11% of staff fall into this category) and improving skills, notably through its in-house training academy. In 2024, Nexgen is expecting to deliver about £2m of social value to its clients (as measured by the Social Value TOM system).

When Bridges invested in Just Ask, the business employed 450 people and was generating about £10m of revenue. Nexgen Group is now generating revenue of c.£90m, with around 3,500 employees.

Mark Little, CEO of Nexgen Group, said: “Bridges were the perfect investment partner for Just Ask because they understood the value that its ESG focus would bring, while also providing hands-on commercial input and support. Over the years, the Bridges team have played a vital role in helping drive through transformative acquisitions, significantly enhancing our operating capacity, and scaling our impact. We’re very grateful for their partnership and support over the last seven years. I am confident that Bidvest Noonan will be an excellent partner to support our long-term growth plans. We look forward to drawing on their support to further enhancing our offer to clients in the coming years.”

Mark went on to add: “We are delighted with a successful outcome that was made possible with the exceptional support and guidance of Arrowpoint Advisory. The team were excellent in steering us through the whole process. We look forward to continuing the next phase of our exciting journey with Bidvest Noonan.”

Declan Doyle, CEO of Bidvest Noonan, added: “We are very impressed with the team at Nexgen Group. They have built a thriving business with a very bright and exciting future. Their strong commitment to their colleagues, customers and communities has been key to their success. We look forward to supporting them and contributing to their continued growth and success.”

James Hurrell, Partner at Bridges, commented: “Thank you to the Arrowpoint Advisory team for delivering a smooth and successful transaction. Your market knowledge, sector expertise and hands-on support helped to ensure a strong result for the shareholders of Nexgen. This marks the second strong exit for Bridges and Arrowpoint Advisory together in a 6-month period following the sale of AgilityEco earlier in the year – we look forward to working together in the future and would not hesitate to recommend you.”

Joe Austin, Director at Arrowpoint Advisory, concluded: “It has been a pleasure to advise on the Nexgen transaction, which represents another successful client outcome for Arrowpoint Advisory’s market-leading Built Environment sector team and an important further endorsement of our strength in advising differentiated, ESG-led businesses. We wish Mark and Declan every success together over the coming years.”

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