Lyceum Capital’s strategy to consolidate the energy consultancy sector has continued with its GBP6.25m acquisition of risk management specialist Encore International on behalf of platform investment McKinnon & Clarke.
The enlarged business will be re-named M&C Energy Group on 1 July.
The mid-market growth investor acquired McKinnon & Clarke, one of the largest energy procurement and compliance specialists in Europe, for GBP22m at the turn of the year and immediately implemented a programme of operational enhancement and acquisitions.
This deal sees McKinnon & Clarke acquire Encore International, a provider of energy price risk management services which handles more than EUR2.4bn of procurement annually on behalf of over 150 blue chip customers across 16 European countries.
Founded in 2001, the London-headquartered business 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 the business’ turnover to more than GBP30m.
Dan Adler (pictured), partner at Lyceum Capital who led the deal, 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 McKinnon & Clarke, says: “Like McKinnon and 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.”
