MSIF takes stake in Foz Contract Services
THE Merseyside Special Investment Fund (MSIF) has invested £1.4m in an equity stake in Birkenhead building services firm Foz Contract Services.
The business was formed following the merger of Foz Electrical and TFR Contract Services. It carries out a range of work including electrical and mechanical services, external and internal wall insulation, and renewable energy installation.
Customers include Seddon Group, MITIE Group, Lovell, HT Forrest, Carillion, Wirral Borough Council and a number of housing associations.
Foz was originally set up in 2004 by managing director Chris Foran who went on to form TFR in 2012 in conjunction with two ex-directors of Carillion Contract Services, Paul Turner and John Roche to move into the insulation markets. MSIF has previously invested in both businesses.
Mr Foran said: “We identified that the business had moved away from being an electrical contractor into a group of specialist services. To fully exploit future opportunities we wanted to merge Foz and TFR to create a stronger business and the significant investment from MSIF has enabled us to do this.
“The support of MSIF in growing our businesses has been vital since 2009. It was our experiences with them that gave us confidence that MSIF were the right investment partner to continue our growth development plan.
“We are also in the process of establishing and expanding our management team and infrastructure to support our aspirations, and ensuring the controlled growth set out in the business plan.”
MSIF investment director Mark Borzomato said: “Under Chris’s stewardship Foz has gone from strength-to-strength and has a strong track record for growth. The company has built up an impressive reputation in the marketplace and with the support of the newly formed management team is ideally placed to continue its growth.”
Turnover is expected to exceed £12m this year at the business which employs 53 staff and a number of sub-contractors.
Hill Dickinson provided legal advice to MSIF and DSG advised on financial due diligence. O’Connors provided legal advice to Chris Foran with the incoming management team advised by Brabners Chaffe Street. Dow Schofield Watts provided corporate finance advice.
