Mid-market growth investor Lyceum Capital has acquired McKinnon & Clarke, one of the largest energy procurement and compliance specialists in Europe, for GBP22m.
The deal sees Lyceum Capital take a significant majority stake in the consultancy which advises business users on energy and environmental usage and legislation in regulated and deregulated markets across the globe.
McKinnon & Clarke assists its 2,500-strong client base in driving efficiencies by providing a broad range of planning, procurement and management services.
Headquartered in Fife, the company employs 87 people in Scotland and a further 286 across an international network of offices which spans 18 countries in Europe and the Far East.
Lyceum Capital is now working with management to implement an investment strategy which aims to strengthen McKinnon & Clarke’s infrastructure, drive new organic growth and enable it to source and fund the acquisition of firms which complement its service offering and geographical coverage.
The growth plan will focus on new opportunities in rapidly expanding international markets and aims to treble McKinnon & Clarke’s GBP22.7m turnover during the next few years.
Founder Sandy McKinnon will retain a minority share in the business and chief executive Simon Northrop will continue to lead the company.
Daniel Adler (pictured) and David Harland from Lyceum Capital will join the board, which will be further strengthened with the arrival of Bill McCall as chairman and Gerry Higgins who has been appointed executive vice chairman.
Adler says: “M&C has excellent long-term prospects as it commands a strong reputation and service offering in an international market that continues to grow year on year.
“It is an ideal platform for our proven investment model which will create further significant value in the business through a rigorous programme of operational enhancement and a focused consolidation strategy.”
Northrop adds: “Lyceum Capital has brought to the table expertise and funding which will see M&C dominate the energy consultancy market on a global stage. There is no question that with their backing, we will be a significantly bigger business in four years time.
“With an ambitious acquisition plan in place targeting companies in Europe and Australia, we will be able to offer our clients unrivalled scale and expertise. As environmental legislation rises higher up the business agenda, organisations will need our services to ensure they are operating to maximum efficiency and within the law.”
Lyceum Capital was advised on the deal by KPMG and Travers Smith and debt funding was provided by HSBC.
