£70m private equity boost fuels home retrofit firm’s acquisitions
A host of Midlands advisors have helped Domna, a name in the home retrofit sector, secure a £70m investment, leading to a major acquisition spree.
With private equity backing from Leon Capital, the company is expanding its footprint through the acquisition of two social housing contractors: The Warmfront Team and Osmosis ACD.
The Dow Schofield Watts corporate finance team in the Midlands, led by partner Harry Walker, alongside Barry Lee and Melanie Lee of Lee Business Advisory, advised the shareholder of The Warmfront Team on the sale to Leon Capital. The advisers worked together with the Nottingham legal team from Freeths, led by John Heaphy and a tax advisory team from Evelyn Partners’ Birmingham office led by Matt Hughes. Leon Capital was advised by Proskauer (legal), KPMG (FDD) and PWC (tax).
Founded in 2023, Domna combines retrofit assessment software with on-site services to enhance housing portfolios across the UK.
The firm was founded by ex-McKinsey partner Anna Moore, ex-British Land strategy executive Chenai Gondo and Khalim Conn-Kowlessar.
The Warmfront Team was established in 2012 in Brierly Hill and offers energy efficiency surveying services, working with over 60 social housing associations and covering 900,000 homes.
Warmfront is involved in public retrofit initiatives, such as the Energy Company Obligation (ECO) and the Great British Insulation Scheme (GBIS).
Alexander Hearn, founder of The Warmfront Team said: “I’m thrilled to announce the partnership and transition of the Warmfront team to the Domna Group after 14 incredible years of trading. I needed to find the right partners who share our vision for a greener future. I have full confidence that the Domna Group will take Warmfront to the next level, continuing our mission to reduce carbon emissions in the UK and make a lasting positive impact on the environment.”
Osmosis ACD, an independent consultancy, hopes to strengthen Domna’s ability to provide PAS 2035-compliant retrofit services to housing associations and local authorities.
The combined group currently completes around 15,000 home retrofits annually across social and private housing in the UK, cutting over 20,000 tonnes of CO2 and saving about £7m in fuel costs each year.
Anna Moore, chief executive officer and co-founder of Domna said: “In Leon Capital, Domna has found a forward-thinking partner that shares our commitment to raising the bar for UK housing and, in doing so, to realising the £500+ billion opportunity in UK retrofit. The synergies with Warmfront and Osmosis are clear and together, we are already proving that retrofit is not only the right thing to do but also good business.
“Whether you care about climate change or the standard of living, the need for action on retrofit is urgent, with homes driving 26% of total emissions in the UK and an estimated 6.5 million households living in fuel poverty. This investment allows us to reach more households, offering practical advice and rolling up our sleeves on site to make homes not only more healthy, comfortable, and energy efficient but also more valuable, with retrofits often adding over 20% to valuations.”
Harry Walker, corporate finance Partner at DSW, said: “Helping to bring together a transaction of this complexity and significance was an exciting challenge that we relished as part of Alex’s advisor team including DSW, Lee Business Advisory, Freeths and Evelyn Partners. From our perspective, we are delighted to have a happy client and to have facilitated another significant Midlands built environment transaction and private equity investment into the sector. We wish everyone at the Domna Group all the best in driving their buy-and-build plans forward.”
