Rcapital has completed the acquisition of Avonside Energy Limited, the insulation and solar PV service provider.
Avonside Energy is a standalone division of the Avonside Group that entered insolvency proceedings last week. The transaction incorporates the Avonside Renewables business which has also been rescued by Rcapital as part of the deal. The acquisition has been a solvent deal and Avonside Energy is not part of the wider group insolvency.
Headquartered in Leicester, Avonside Energy has a strong national presence with operations in the West Midlands, East Midlands, Glasgow, Leeds, Newcastle, Warrington and Stevenage. This transaction will ensure the preservation of over 100 jobs across the country.
Avonside Energy will generate revenue of over £15 million this year and is profitable and cash generative. It employs over 100 skilled workers 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.
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 last two months. Rcapital 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 are delighted to be supporting Bill and his team and 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 LLP. Begbies Traynor were advised by Pinsent Masons LLP.
