LONDON, UK, JULY 12, 2023: Cap10, the specialist pan-European private equity firm based in London, has completed today the acquisition of 100% of Sureserve Group PLC (LSE:SUR), the compliance and energy services group.
The transaction, which represents Cap10’s first acquisition, values the equity of the Company at £214m. The rare instance of a first time Fund completing a Public-to-Private as first transaction highlights Cap10’s ability to embrace complexity to generate value for its investors.
The transaction demonstrates Cap10’s ability to uncover ‘hidden gems’ and with its prior experience of building sustainable and profitable businesses, turn them into industry champions while creating sustainable value for all stakeholders.
Sureserve, as the leading energy and compliance services provider to the social housing sector in the United Kingdom specialises in the provision of inspection, compliance, maintenance, and installation services in the areas of heating, insulation, and renewable energy. Sureserve is set to play a key role in reducing fuel poverty and achieving UK’s Net Zero targets, supporting the energy transition journey of social housing landlords and public sector bodies.
Sureserve has recently posted strong performance results, reporting a 23% increase in revenues and a 41% increase in EBITA for the six months ended March 31st, 2023, compared to the equivalent period in the prior year.
Fabrice Nottin, founding Partner of Cap10 said: “Sureserve has all the characteristics of a Cap10 investment: its ambitions are critical to the UK government’s energy transition agenda to address fuel poverty for the most vulnerable parts of the UK population; it has all the features of a ‘hidden gem’, namely being a primary transaction in a complex process, and a fundamentally good but under-appreciated business by the public markets.”
“Sureserve has very defensive foundations as the largest UK player providing recurring regulatory-driven compliance and maintenance services for heating infrastructures. This is combined with meaningful transformation potential to become the pivotal player in delivering energy transition for social housing in the UK, by leveraging a unique set of capabilities and service offering.”
“We’re now going to start strategically investing in the business to achieve its true potential. As well as broadening its main service lines to deliver its full organic growth potential, we’re also planning to consolidate the market to create a national champion and enhance the breadth and quality of its service offering.”
Peter Smith, CEO of Sureserve, said: “This is an incredibly exciting time for everyone at Sureserve. I am very much looking forward to working alongside the Cap10 team as we look to grow the Company together. Moving into private ownership brings many benefits, not least the ability to be agile and respond to quickly changing market environments. This will be key as we work to improve domestic energy efficiency in the current energy environment.”
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