Private equity firm puts £9m into buyout at Dale Power
One of the country’s leading power system suppliers, based in Scarborough, has undergone a management buy out with private equity firm NVM investing £9m for a majority stake.
Dale Power serves organisations in sectors including telecoms, healthcare, oil and gas and utilities, as well as the power distribution network itself.
New opportunities for Dale in areas such as energy storage, are expected to complement strong organic growth in its core business, in what is a rapidly developing energy market in the UK.
Dale said the investment from NVM will also provide scope to consolidate its position as the leading independent UK provider of these services through acquisition.
Dale employs more than 270 people across the UK, including a nationwide team of more than 70 service engineers, and can trace its roots back more than 80 years to 1935.
The business has built up a list of global blue-chip clients including NEC, Siemens, National Grid, ISG, Mitie, Northern Power Grid, Vodafone and Thames Water.
Tim Wilkins, Dale’s CEO, has more than 30 years experience in the power sector.
The executive team is complemented by chairman, Denzil Lee, who will continue in the role following the MBO.
The deal was led for NVM by investment partners James Arrowsmith and Mauro Biagioni. Arrowsmith will join the board as a non-executive director with immediate effect.
Lee said: “The team at Dale is excited with the new opportunity of working with NVM to further develop our core business and exploit the significant opportunities in the new and fast developing energy storage sector. NVM throughout the process have worked closely with the team to understand the business and we have already developed an excellent working relationship which will help us greatly in exploiting the business opportunities.”
Arrowsmith added: “We have been very impressed with the team at Dale, who have done a great job in building a high quality business providing power solutions and services which are critical to a wide range of organisations in the UK and abroad. We are looking forward to working with Denzil, Tim and the rest of the team to take advantage of new market opportunities whilst continuing to build on the core business. There is scope for significant growth over the next few years and we are very excited about the business’s future under NVM’s ownership.”
