Sovereign set to sell majority stake in ESG

Buyout group Sovereign Capital looks set to sell to management its majority stake in the Employability and Skills Group (ESG), which trains employees at 5,000 companies.

A team led by the chief executive, Adrian Holmes, is the frontrunner for the £80m stake, which was put up for sale by Sovereign adviser BDO Stoy Hayward at the start of the year.

Duke Street Capital, the private equity group, has also been identified as a potential bidder.

Sovereign – which focuses on buyouts in the healthcare, support services and education and training sectors – bought the Sheffield-based business in December 2004, when it was known as Pelcombe Training. The company has been around since 1968.

ESG has an annual turnover of £25m, and its clients include Jobcentre Plus and the Department for Work and Pensions. Private-sector partners include retailer Ted Baker and computing company The Game Group. More than 6,000 people a year are trained by ESG.

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