Clarke Energy snapped up in £300m deal

CLARKE Energy, the Knowsley-based distributed power generation specialist, has agreed a sale to a US trade buyer for around £300m.

Kohler Power Group, a private family-owned manufacturing business headquartered in Wisconsin, is understood to see the deal as a way to diversify into renewables.

Clarke Energy, which has 1,000 employees based in 17 countries, installs and maintains gas and diesel-fuelled power plants.

It made record revenues of £233m in the year to October 2015, with a pre-tax loss of £6.3m.

The deal, led by Jonathan Boyers of KPMG, marks an exit for private equity firm ECI, which invested more than £100m for a 30% stake in the business four years ago.

Founder Jim Clarke, who set up the business in 1989, selling spare engine parts, is understood to have made around £150m from the deal.

His son Jamie Clarke runs the business and is expected to stay on under the new ownership.

Investment firm 3i bought a small stake to fund overseas expansion in 1999, selling out to Clarke in 2010, before ECI took its minority stake in 2012.

KPMG was first appointed to review strategic options for the business in June.

Completion is expected in the next few weeks.

Click here to sign up to receive our new South West business news...
Close