Background

Headquartered in Oldham, ThinkHire was established in 2018, and was created to enable the construction sector to improve its environmental performance in the face of the climate crisis. ThinkHire is the pioneer of the Solartainer Versatile range, the world’s first adaptable solar hybrid generators. They provide relocatable renewable energy solutions and solar hybrid power generation, alongside eco welfare solutions and site establishment products for both hire and sale nationwide. The business has doubled its revenues year-on-year since 2020. There are currently 20 people in the business, with plans to grow this nationally over the next few years.

Action

The FRP Corporate Finance, Manchester team were appointed as buy-side M&A advisers to YFM Equity Partners and Newco. The team provided both Corporate Finance and Debt Advisory services to YFM and Newco, which was a key value point for the client as they were unfamiliar with the ABL market. The team supported with an ABL debt process, initial valuations and exit considerations, and financial modelling for Newco. A detailed brief was prepared to gage and select the lender. FRP presented the shortlisted lenders to the management team where they selected the party which was able to provide a £25 million ABL facility. YFM invested alongside management in acquiring ThinkHire (via Newco called Think Energy Group Limited).

Outcome

YFM’s investment will enable ThinkHire to undertake the next stage of its development by significantly growing its asset hire fleet, extending its distribution network across the UK, and ramping up investment in developing new products and services to help clients meet their net zero goals. The renewable energy sector is an area of significant investor focus, with companies and government increasingly having to meet strict ESG or sustainabil-ity targets. ThinkHire is well positioned to capitalise on this trend and likely this will be one of many deals in this space over the next few years as larger players attempt to consolidate the market.