Serco Group plc was previously owned by RCA Corporation, a company acquired by General Electric Company in 1986. Regarded as non-core, it was sold to management in January 1987, with support from Cinven and other investors.
Serco’s business encompassed facilities management, operations and maintenance, project management and systems design, all in the context of highly specialised areas of the defence and aerospace sectors. The company supplied personnel to carry out these functions under long-term contracts with, typically, the UK Ministry of Defence and other UK and foreign public sector agencies.
Underpinned by long term contracts and a highly stable historic renewal rate, the experienced management team was backed to take advantage of a high growth market. The strategy involved new customer wins in addition to existing contract extensions through the provision of specialist services.
The business progressed according to plan and in May 1988 Serco was successfully listed on the London Stock Exchange.
Multiple returned on investment: 6.2x