Sovereign Capital has completed the institutional buy-out (IBO) of Cheshire based DC Group Limited, incorporating Seaflame and Camerons, providers of gas maintenance services and fabric maintenance to the social housing sector.
The deal was supported by Yorkshire Bank Specialist & Acquisition Finance North West and Midlands region, which provided a total debt package of £54.255m.
Established in 1946, DC Group Limited, a support services company, delivers maintenance services to social homes through long-term contracts with local authorities and housing associations. The group has two main divisions: Seaflame, the largest gas maintenance contractor in the London market and Camerons, which carries out social housing refurbishment .
Sovereign has supplied funds to finance the acquisition and has committed a further £10 million of equity to support the company's buy and build strategy.
The existing management team remain with the business.
There are approximately five million homes provided by local authorities and housing associations in the UK. The cost of refurbishing and maintaining these homes is currently in excess of £10 billion per annum with increasing service provision coming from the private sector.
Ian Mansell, Director, partner, for the North West & Midlands Specialist & Acquisition Finance team, said: "Seaflame and Camerons both have a strong track record in the market and have long-established relationships with their customers, which include Knowsley, Halton and Riverside Housing Trusts and Councils. We have been delighted to work with Sovereign Capital and the DC Group on this important acquisition and look forward to continuing our relationship with them in the future."
Operating through the Yorkshire Bank financial solutions centres (FSC's) within the UK, the Specialist & Acquisition Finance team work with companies to structure creative funding packages tailored to the individual needs of the business. All with the backing of one of the world's largest financial services organisations, the National Australia Bank Group.