Sureserve to finalise £56.4m ‘compelling’ property services acquisition by tomorrow as court approves deal

The acquisition, first announced last month, will be implemented once the court order approving the deal is provided to and legally recorded by Companies House.

In preparation, Volt Holdco, as borrower and guarantor, and Volt Topco, both indirect parents of Sureserve through Cap10 Partners, the private equity parent firm, entered into a £65 million loan agreement with funds managed by investment company, Ares Management.

The funding will be used to finance the acquisition of the £64.1 million turnover, property services specialist and cover associated costs, including aggregate fees and expenses of around £1,976,700 (excluding VAT).

Under the terms of the deal, Kinovo shareholders will receive 87.5 pence in cash per share – a 41.1 per cent premium to the closing price of 62 pence from the offer period start date of 9 May.

The deal is expected to become effective tomorrow.

Trading in Kinovo shares on the London Stock Exchange’s Alternative Investment Market (AIM) will see its final day of dealing today, with full cancellation expected to take effect on 2 July.

As part of the process, 1,027,142 shares will be issued under Kinovo’s company share option plan (CSOP) to fulfill exercised employee options, including those held by directors.

Kinovo chief executive officer, David Bullen and chief financial officer, Clive Lovett will step down from the board 14 days following the acquisition, providing up to three months of transitional consultancy support as needed.

Kinovo chairwoman, Sangita Shah said the acquisition would provide shareholders with “immediate value and at a meaningful premium”.

She described the potential of the combined group – integrating Kinovo’s housing-sector expertise with Sureserve’s compliance and energy services – as “compelling”.

The transaction follows Sureserve’s acquisition of environmental engineering consultancy HI Group earlier this month, as well as earlier deals for Swale Heating Limited, and renewable energy installation and maintenance business, Low Carbon Exchange Limited.

The moves reflect Sureserve’s strategic expansion within the growing decarbonisation market by Cap10 Partners, which acquired the group in 2023 for £214 million cash.

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