The company, which is headquartered in Manchester and operates a UK-wide network of regional offices, is one of the largest independently-owned integrators of building energy management systems, with particular expertise in remote monitoring and energy optimisation services.
LDC has invested £10million of equity for a significant minority stake in the new company, with additional bank funding provided by HSBC. LDC’s investment was led by Jonathan Bell and Jon Pickering.
Following the investment, the £25m turnover company will pursue an acquisition-led strategy backed by LDC to create a market-leading service provider in the £850m energy management sector. Several complementary businesses have already been identified, with a maiden acquisition expected to follow within the coming months.
Supplying both the retrofit and new build markets, Matrix’s (now known as Green Sky Energy) expertise enables its customers to reduce the carbon footprint and energy consumption of their property portfolios, using technology developed by some of the world’s leading manufacturers such as Siemens and Honeywell. Its customer base consists predominantly of large blue chip organisations, including Tesco, Marks & Spencer, BAE Systems and the BBC.
Demand for building energy management systems (BEMS) is predicted to continue growing, driven by organisations’ desire to reduce energy consumption, the CRC Energy Efficiency Scheme - which will come into effect in April this year - and by continued price volatility in the energy markets. It has also become a key area of focus within company’s corporate social responsibility strategies, most notably for customer-led brands.
Ian Kelly, a leading figure in the energy management sector, has been appointed chief executive of the new company to spearhead its growth strategy.
All of the existing senior management team will remain with the business. The executive team has been strengthened by the appointment of Steve Daniels as sales director and Simon Oldfield as chief financial officer.
Chris Thomas will join the board as chairman, alongside LDC investment director Jonathan Bell who joins as non-executive director.
Ian Kelly, chief executive said: “This is an exciting opportunity for the existing business, our employees, clients and the wider market.”
“Customers are looking to collaborate with suppliers who can help them address the challenges presented by increasing energy usage and the new CRC legislation, volatile energy prices and corporate social responsibility. The backing of LDC will enable us to build a true market-leading presence in the energy management sector with unrivalled depth and breadth of capability and skills, both technical and operational.”
Jonathan Bell, investment director at LDC, said: “This is a growing market with highly fragmented supply chain - dynamics which present a unique opportunity to create a first-choice supplier with scale and expertise. In Matrix, we have a proven business model with an excellent reputation amongst its customers and a strengthened management team capable of executing the strategy.”
Ray Stenton, head of LDC’s Manchester office, added: “The investment represents LDC’s continued commitment to investing in high quality North West businesses and support their growth ambitions either organically or via acquisitions. In addition the Matrix investment forms part of a wider strategy within LDC to support businesses operating in the energy and environmental services sector, which we see as a significant contributor to future economic growth.”
The Manchester office of European investment bank, Altium, advised LDC and management. Its managing director, Simon Lord, said: “The energy management market is on the brink of radical change. With the CRC Energy Efficiency Scheme (CRC) due to come into effect in 2010, the backing from LDC and the development of an experienced management team will present Matrix with the perfect opportunity to become a clear market leader in a fragmented industry.”
ENDS 17 March 2010
For further information, please contact:
Martin Currie
Citypress
T. 0161 235 0310
M. 07976 291532
E. martin.currie@citypress.co.uk
James Lloyd-Davies
Citypress
T. 0161 235 0308
M. 07782 135828
E. james@citypress.co.uk
Debt provider:
HSBC – Dave Furlong and Norman Davidson
Advisors to LDC and Newco:
Altium (Simon Lord, Andy Clarke & Chris Hopwood) – Corporate Finance Advisory
Deloitte (Jodi Birkett & John Williams) – Financial Due Diligence
PwC (Simon Viner & David Burke) – Tax
Verdantix (Rodolphe d'Arjuzon & David Metcalf) – Commercial Due Diligence
Tyler Mangan - Management Due Diligence
Eversheds (Jonathan Robinson, Alasdair Outhwaite & Victoria Ross) – Newco Legals
Intuitus (Callum Stewart) – IT Due Diligence
Bridge– Insurance Due Diligence
Advisors to Management:
Fielden Law (Nick Fielden) – Management Legal
Advisors to Vendor:
Rickerbys (Richard Knight) – Vendor Legals
Notes to editors:
1. LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority.
2. LDC has, since 1981, completed over 400 investments and has ongoing interests in over 60 businesses across the UK.
3. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
4. LDC invests in a broad range of sectors and has particular experience in financial services, healthcare, industrials, IT & software, leisure & media, retail & consumer, and support services.
5. LDC has 12 offices – Aberdeen, Birmingham, Bristol, Edinburgh, Hong Kong, Leeds, Liverpool, London, Manchester, Newcastle, Nottingham, Reading.
6. For further information, visit www.ldc.co.uk