Energy price risk management company Encore International has been sold for GBP6.25m to McKinnon & Clarke, an energy procurement and compliance specialist headquartered in Edinburgh.
McKinnon & Clarke is a portfolio company of private equity business Lyceum Capital.
The enlarged business will be re-named M&C Energy Group on 1 July.
Fusion Corporate Partners acted as exclusive advisers to the shareholders of Encore International. Paul Kelly led the transaction at Fusion. It is the third energy consultancy sector deal completed by Fusion.
Lyceum Capital acquired McKinnon & Clark in January this year for GBP22m.
Founded in 2001, London-headquartered Encore is an independent adviser with a major operational base in Budapest and sales offices in the Netherlands and Germany. Its services include developing control policies, tendering and negotiating contracts, budget risk analysis, environmental auditing and reporting and live market transaction support and invoice settlement.
Encore International’s managing director Mark Dickinson and European sales director Colin Gebhard will join the management team of M&C Energy Group.
The acquisition increases McKinnon & Clarke’s turnover to more than GBP30m.
Dan Adler (pictured), partner at Lyceum Capital, says: “The volatility and complexity of the global energy markets require large corporates to manage risks associated with energy procurement with the same rigour as they do in other areas such as interest rates and foreign exchange.
“With its ability to monitor and alter risk positions on a 24/7 basis, Encore International has unparalleled market coverage and is the only business capable of providing clients with round the clock access to the latest data and advice.
“Encore will now benefit from the investment we’ve made in M&C’s infrastructure and the deal demonstrates our ongoing commitment to consolidating this highly fragmented market around a robust platform business.”
Simon Northrop, chief executive of M&C, says: “Like McKinnon & Clarke, Encore has over the years justifiably earned a place as one of the best respected companies working within the industry.
“Now by combining our complementary skills and experience, I am confident that we can deliver additional benefits to current clients of both companies and of course also to future clients across the globe.”
