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M&A Advisory

South Coast Insulation Services

Advisors to insulation services provider, SCIS on its acquisition of Cotswold Energy Group.

The deal

A Hampshire-headquartered insulation services provider has acquired renewable energy M&E firm Cotswold Energy Group, in a deal supported by our Corporate Finance team.

South Coast Insulation Services (SCIS), which is a tier one partner to three of the ‘Big Six’ energy suppliers, has acquired 100% of the Gloucestershire-based business for an undisclosed fee. The deal will see Cotswold Energy Group’s co-founders, Jon Bonnar and Robin Hodge, remain with the business as it continues to operate as a separate division and standalone brand to SCIS.

The deal will enable SCIS, which has a secondary office in Devon, to diversify its services into additional energy efficient technologies and practices, including ground and air source heat pump installation. Established in 2010, SCIS’ clients include housing associations and property owners, with the firm delivering fully integrated insulation solutions as well as funding support.

Cotswold Energy Group offers mechanical & electrical installation services via an in-house team of accredited engineers. The business was founded by Jon Bonnar, Robin Hodge and Aaron Stuart-Kelso in 2018, with Aaron Stuart-Kelso now exiting the business.

The deal was led by Director Alex Sargeant and Partner Mark Naughton from our Bristol office, who provided full buyside support to SCIS, encompassing both M&A and Debt Advisory services. The team worked closely with buyside legal adviser James Crotty, corporate associate at Foot Anstey, with funding for the deal provided by NatWest – led by Mikael Rosen and Richard Emblen. Cotswold Energy Group was advised by KBS and Harrison Clark Rickerbys.

SCIS CEO Nicolas Gillanders said: “The importance of the climate emergency cannot be understated and we are seeing that reflected in the demand for our services, as homeowners, private landlords and housing providers review the energy efficiency of their properties in light of both this and the cost-of-living crisis.

“With the expert support from the team at FRP Corporate Finance we’ve been able to acquire Cotswold Energy Group in a move that gives us an opportunity to build on our existing offering as likeminded businesses with a shared goal of helping customers reduce their carbon emissions. I’d like to thank the team at FRP, and our advisers at Foot Anstey, for their support on this deal, as well as the team at NatWest for financing the transaction.”

Alex Sargeant, Director at FRP Corporate Finance, added: “This acquisition represents a significant expansion of SCIS’ capabilities and services, and we are confident that it will bolster their leading position in the growing home energy efficiency market. It’s rewarding to see two complementary businesses come together to benefit from one another’s knowledge and expertise to drive incremental growth. It’s been a pleasure advising Nicolas and his team, and we wish them well for the future.”

Deal summary

Date:

May 2023

Sector:

Industrials & Manufacturing

Deal type:

Buying a business

Deal size:

Undisclosed

It’s rewarding to see two businesses benefitting from one another’s knowledge, expertise and services to drive incremental growth. Alex Sargeant Corporate Finance

Related team

Alex Sargeant

Alex Sargeant

  • Director
  • Corporate Finance
  • Bristol

Mark Naughton

Mark Naughton

  • Partner
  • Corporate Finance
  • Bristol