HgCapital Sells SHL to The Corporate Executive Board Company for $660 Million

HgCapital said Tuesday it has sold SHL, a U.K.-based talent-testing company, to U.S. group The Corporate Executive Board Company (EXBD) for $660 million.

London-based HgCapital took SHL private in a buyout worth $187 million in 2006 and subsequently merged it with Previsor, a U.S. based competitor, in January 2011. The sale nets HgCapital over three times the cash it put into its original acquisition and represents a gross return of 26% for the private equity firm's investors.

SHL provides testing for companies worldwide and counts blue-chip corporations including Barclays PLC (BCS), Coca Cola Co. (K)) and Hilton Worldwide among its clients. The company delivers around 25 million talent assessments annually in over 30 languages. It had revenue of more than $200 million last year.

"SHL is a very high quality business, recognized in its industry as the clear global leader," said Lisa Stone, a Partner in HgCapital's Portfolio Management team.

"The management team has done a tremendous job in growing and developing the business and I am delighted that SHL is finding a new home with CEB where it has a strong strategic fit," Ms. Stone added.

CEB's client and member network includes 85% of the Fortune 500, 50% of the Dow Jones Asian Titans, and 70% of the FTSE 100. It spans more than 50 countries, 5,700 individual organizations, and 225,000 business professionals.

Morgan Stanley (MS) ran the auction.

HgCapital Trust (HGT.LN), the listed fund managed by HgCapital, will realize GBP27.1 million from the sale.

Write to Marietta Cauchi at [e-mail]