Two Stockport-based mechanical services companies have undergone a refinancing backed by private equity company Acorn Capital Partners and Yorkshire Bank.
The deal will bring together Thermotech, a specialist in fire protection systems, with TAC Mechanical Services, an air conditioning firm based in the same building, under a single ownership. It allows the companies’ founders to realise some of their investment in the businesses and gives them access to new funding for growth. Yorkshire Bank provided a multi million pound funding package to support the deal.
Thermotech, established in 2000 by David Prendergast, installs and maintains fire protection systems for retailers and has a turnover of £2.4 million. Its contracts with Marks & Spencer, Toys R Us and Boots give it responsibility for maintaining sprinkler systems in 700 stores throughout the UK. Meanwhile TAC, set up in 2006 by Chris Anderson, installs and maintains air conditioning systems and has a turnover of £1.8 million.
Both businesses will now be brought together under the ownership of one company, with David Prendergast and Chris Anderson as majority shareholders and Graham Norfolk of Acorn Capital Partners joining the board.
Ian Hardman & Peter Smith, directors of Yorkshire Bank’s Specialist & Acquisition Finance team, led the transaction for the Bank. Smith said: “Thermotech and TAC are two successful local companies with high quality clients and knowledgeable management teams.
Hardman added: “The deal will allow them to benefit from synergies and cross-selling opportunities and branch out into related areas. In the longer term, it will enable them to expand their offering and create additional value by pursuing a ‘buy and build’ strategy to develop a group offering a wide range of complementary services.”
Graham Norfolk of Acorn Capital Partners added: “Chris and David have established two excellent companies that can now look to grow together both organically and by acquisition. Acorn Capital Partners look to back management teams that are ambitious for growth.“