Panoramic Growth Equity’s renewable energy distribution specialist business, Solfex Energy Systems, has been sold to Travis Perkins.
The sale represents the first exit from the Panoramic Enterprise Capital Fund I, which held its final close in September 2010 and was oversubscribed at GBP34m.
The sale has generated an IRR of 62 per cent for Panoramic, in just 16 months since it invested GBP1.25m into the business in September 2011. This return is expected to increase to an IRR of 120 per cent following the earn out period. With Panoramic’s backing Solfex has seen its profitability increase substantially and turnover has grown from GBP5m to GBP22m in the past two years. The business has also broadened its product range and service offering and tripled headcount from five to 15 employees over the same period.
Based in Preston, Lancashire, Solfex was established in 2006 by Stuart and Susan Cooper. With Panoramic’s backing the business has grown to become one of the largest renewable energy systems integrators in the UK.
Malcolm Kpedekpo, partner at Panoramic, says: “This is a great result for Panoramic as it represents the first exit from our first fund which held its final close in September 2010 at GBP34m. Solfex is a fantastic business that has achieved impressive growth in a short timeframe and is a shining example of a management team who know their market inside out. The management team has been extremely successful in staying ahead of new technology and adapting their offering to the needs of their customers. Further exciting new opportunities exist for this market leading business to utilise the high growth opportunities that lie within the UK’s renewable energy sector as part of the wider Travis Perkins group.”
Stuart Cooper says: “Panoramic has proved to be an excellent investment partner, providing us with the financial backing and business expertise that has enabled the business to achieve substantial growth, tripling the size of our team and significantly increasing revenues.”
