A substantial stake in Manchester-based support services group IDSS Holdings Ltd has been acquired by Penta Capital in a deal backed by Yorkshire Bank.
The deal allows Aberdeen Asset Managers Growth Capital, which invested in IDSS in early 2007, to realise most of its shares in the business. Penta plans further investment to grow the business and secure its position as a leading national service provider to blue chip, multi-site customers in the retail, public, leisure and commercial sectors.
IDSS operates through two trading groups. ID Technology Group (IDT), which employs 100 staff in Middleton, Manchester, is one of the UK’s largest
independent providers of electronic security solutions. It specialises in the design, installation and maintenance of electronic surveillance systems including CCTV and Access Control; and through ID Intact, IDSS’s specialist alarms subsidiary, delivers similar services for intruder and fire alarms. Clients include Compass Group, Currys, Debenhams, GAP, HMV, PC World, Philips, Sainsbury’s, TK Maxx and Wilkinson.
GK Industrial, based in Doncaster, employs 72 staff and designs and installs energy efficient, climate control solutions. It is a market leader in the provision of bespoke air conditioning, heating and electrical systems and provides service and maintenance support on a national scale. GK Scotia, based in Glenrothes, employs 62 staff and provides a similar service to the Scottish market. Customers include Brighthouse, Capita, Dalkia, Laura Ashley, Next, Philips, RBS, TK Maxx and Wilkinson.
In the year to 30 June 2008 IDSS has grown by 42 per cent with revenues of £26.5 million. The group acquired ID Intact Limited in November 2007 and GK Scotia in December the same year. Further acquisitions and strong organic growth are planned for the coming year.
The deal allows Aberdeen Asset Managers Growth Capital (AAMGC) to substantially exit the business. AAMGC invested in IDSS alongside the incumbent senior management team in March 2007. IDSS management, led by chairman Brian Dunn and chief executive David Metcalfe, and Penta plan further investment to fund future growth.
Brian Dunn said: “This strategic investment by Penta will give the business greater growth potential as it progresses towards its goal of becoming a £100m turnover support services company. Our services are adding real value to our customers, and we have identified a number of opportunities that will improve the breadth and depth of our service offering. We are looking to grow the business both organically and by acquisition.”
The transaction was led for Yorkshire Bank by directors Roddy Kilpatrick and Owen Malton of the Specialist & Acquisition Finance team in Manchester. Owen Malton said: “Penta Capital is an ideal investment partner at this stage in its development, as it is willing to commit additional funds to help it achieve its growth ambitions, and establish IDSS as the leading UK player.”