Click here for printer friendly page

UK Bridgepoint to buy storage company for £40m

UK private equity firm Bridgepoint is to back the management buy-out of listed self-storage business Safestore for £40m.

Bridgepoint has offered 44 pence per share for Safestore, which equates to a premium of 16 per cent above the company's share price prior to the announcement of takeover discussions.

‘Today's offer is fair and comes with the recommendation of the company's board,' said Alan Payne, director of Bridgepoint. ‘The self-storage market is growing strongly but remains underdeveloped in the UK. Safestore's management can now move forward to exploit the opportunity and roll out their proven model to a wider market both organically and by selective acquisition,' he continued.

The self-storage market in the UK is currently worth £200m per year, with around 400 stores currently in operation. Safestore has 23 stores, principally in London and the Southeast.

Copyright © 2003 AltAssets