MBO secures more than 100 jobs at Avonside Energy
Private investor Rcapital, has acquired insulation and solar PV service provider, Avonside Energy Limited as part of a management buyout, for an undisclosed sum.
The company is part of the Heywood-based roofing specialist, Avonside Group, which collapsed into administration last week.
However, Leicester-based Avonside Energy is a standalone division of the group and is not part of the wider group insolvency.
The Rcapital deal also incorporates the Avonside Renewables business.
Avonside Energy employs more than 100 staff and is a key part of the new-build supply chain, with major customers including Barratt Homes, Taylor Wimpey, Persimmon Homes, Redrow and Miller Homes.
It has a strong national presence with operations in the West Midlands, East Midlands, Glasgow, Leeds, Newcastle, Warrington and Stevenage.
Avonside Energy will generate revenue of more than £15m this year and is profitable and cash generative.
London-based Rcapital is an experienced investor in the construction services sector, having previously owned Rock Roofing Contractors, Alsop Architects and Plowman Craven. This is Rcapital’s second construction services acquisition in the past two months.
It has appointed experienced operator Nick Alexander as chairman to further strengthen the management team.
Bill Rumble, managing director at Avonside Energy, said: “I’m delighted to confirm that agreement has been reached for Avonside Energy to be acquired by its management team with the support of Rcapital. This means it’s business as usual for Avonside Energy and the investment brought by Rcapital will mean we are in an even stronger position to make a major contribution towards the significant challenge our new-build customers face in satisfying the increased energy efficiency demands.”
Chris Campbell, partner at Rcapital, said: “Avonside Energy is a profitable business and a significant employer across the country with an enviable blue-chip client base. We firmly believe that Avonside Energy will be integral to helping the UK achieve its decarbonisation strategy of net zero by 2050.”
Kirstie Provan, partner at Begbies Traynor and joint administrator of Avonside Group Services Limited, said: “We are delighted to have completed the solvent rescue of the energy division of the Avonside Group, securing the preservation of a significant number of jobs and the future of the business. The purchase by Rcapital gives the business a solid platform from which to move forward, and we wish the management team every success.”
Rcapital was advised by Browne Jacobson. Begbies Traynor was advised by Pinsent Masons.
The Avonside Group employed 450 staff, and had around 1,200 contract labourers on its books.
It was badly impacted by the pandemic and required extra working capital.
However, its lenders and financial backers were unable to provide the required funds, and a sale process two weeks ago failed to find a suitable buyer, leading to the group’s administration.
