Orbis buys distressed energy firm out of administration
BIRMINGHAM-based private equity firm Orbis Partners has bought London energy efficiency group powerPerfector out of administration.
It has acquired it, for an undisclosed sum, via its Intrinsic Equity investment vehicle.
Administrators from FRP Advisory were appointed to powerPerfector on Wednesday and sold the trade and assets of the group to an unconnected, newly formed company on the same day.
The new company is named intelligent Energy Saving Company but will continue to use the powerPerfector brand name.
The business has been recapitalised with a substantial investment and will also benefit from more flexible working capital facilities from Shawbrook Bank.
The existing management team will be enhanced by additional strategic, financial and management expertise from the Intrinsic Equity team.
powerPerfector introduced Voltage Power Optimisation to the UK in 2004 and has been at the forefront of the voltage optimisation market. The technology is employed by some of the biggest names in energy and climate change. They include the energy regulator (Ofgem), the government’s climate change department (DECC), the UK’s main electricity distributor (National Grid), the UK’s largest retailer (Tesco), the UK’s environmental guardian (Environment Agency), as well as 160 local authorities and 20 government agencies.
At its peak, the group turned over £30m, generated £9m profit and employed 100 people. However, it suffered cash flow difficulties as a result of significant restructuring costs in 2014.
The business lost more than £6.3m in 2014.
James Grenfell, principal at Intrinsic Equity, said: “powerPerfector has a strong commercial rationale delivering unique value added energy efficiency products with proven savings to its extensive client base.
“This investment secures the future of the business and enables the launch of new services and products that will provide clients with intelligent energy savings solutions focused on efficiency and electrical supply resilience.”
Geoff Rowley, a partner at FRP Advisory and one of the administrators, said: “Ultimately, this transaction provides the best outcome for creditors and employees who transferred to the new business.”
Intrinsic Equity was supported by a team of locally-based advisers including law firms Gateley and George Green, insurance broker Jardine Lloyd Thompson and accountancy firm Smith and Williamson.
