Sureserve Group £214m private equity takeover

Energy services provider Sureserve Group has been acquired by a leading private equity firm for £214 million. 

The all-cash acquisition was recommended and agreed by Board members of both Sureserve and Cap10 4NetZero Bidco (Bidco), a newly incorporated company created for Cap10 Partners, back in April. 

The transaction completed this week. 

Cap10 agreed 125 pence in cash for each Sureserve share, a 39% premium to its closing price of 90 pence, reported AJ Bell at the time. Shares in Sureserve rocketed 37% shortly after.    

London-headquartered Cap10 said – in addition to being its first acquisition – the purchase was “a rare instance of a first time Fund completing a Public-to-Private as first transaction”. 

It added the transaction showcased Cap10’s ability to “embrace complexity to generate value for its investors”. 

Dartford-headquartered Sureserve is one of the leading energy and compliance services providers in the UK to the social housing, public buildings, education, energy, industrial and commercial sectors. 

The Group employs more than 2,800 people, and specialises in inspection, compliance, maintenance, and installation services in the areas of heating, insulation, and renewable energy. 

It recently posted strong performance results, reporting a 23% increase in revenues and a 41% increase in EBITA for the six months ended 31 March 2023, compared to the same period in the previous year. 

Its revenue for the year ending September 2022 rose 27% to £275 million, up from £216.6 million in 2021.   

Advising the transaction  

• Evercore  

“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,” said Fabrice Nottin, founding Partner of Cap10. 

“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.” 

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