Yorkshire Bank backs fifth acquisition by Kinetics

11/06/08

Support services company, Kinetics Group has strengthened its presence in the Midlands with the acquisition of Sureway Gas, one of the region’s leading heating and plumbing contractors.

The deal is the latest in a series of acquisitions backed by private equity house Sovereign Capital with debt funding from Yorkshire Bank.

Kinetics, which is based in Surrey, was formed by Sovereign in December 2006 with the £16 million institutional buy-out of DC Group Ltd.  Since then it has pursued a ‘buy and build’ strategy which has seen turnover rise from £32 million to over £115 million. Kinetics now employs 1,250 staff nationwide and has main offices in London, Liverpool, Manchester and Birmingham.

The group comprises a range of businesses including Seaflame and TA Horn, which combined form the largest social housing gas maintenance contractor in London; Walmotts, a leading social housing gas maintenance contractor in the West Midlands; Camerons, which refurbishes social housing in the North West; and Hudsons, a leading provider of gas, electric and other maintenance services to military family homes. In March this year the group acquired the Lord Group, which is based in Rochdale and provides maintenance services to the social housing sector.

Sureway will be the Group’s fifth acquisition in less than two years following the initial buy out of DC Group Ltd.  Based in Birmingham, Sureway has clients including social housing and local authorities throughout the West Midlands and beyond.

Ian Mansell, specialist and acquisition finance director with Yorkshire Bank in Birmingham said: “This is the sixth deal for Kinetics that we have supported, including the initial buy out of DC Group. The Kinetics Group has been a fantastic success story to date and we are delighted to continue to work closely with management and Sovereign in supporting the continued expansion of the group.  Sovereign has a successful track record of pursuing a ‘buy and build’ strategy and has continued to add value to Kinetics with carefully chosen acquisitions.

“Sureway is an excellent strategic fit with its other businesses, particularly Walmotts, and will help the group to establish itself as a leading player in the Midlands social housing market.”