Castle Square advises specialist renewable heating technologies company Project Heating Solutions Limited, on the strategic acquisition of AMCO of Doncaster Limited
Project Heating Solutions Limited (PHS), led by Founder and Managing Director Russell Steelyard, has completed the acquisition of specialist renewable heating and electrical distributor AMCO of Doncaster Limited (AMCO), in a transaction advised by Yorkshire based professional advisory firms Castle Square Corporate Finance and the Sheffield office of national legal services firm Knights. The acquisition was funded by specialist lender SME Capital.
Formed in 2018, PHS has become one of the UK’s leading design and installers of renewable heating technologies and energy saving measures for retrofit residential, commercial and new build property developments.
PHS offer a wide range of energy efficient and environmentally friendly heating alternatives aimed at reducing the UK’s carbon footprint as the nation aims to move away from traditional fossil fuel base forms of heating.
The core suite of products installed by PHS include solar PV & battery storage, air source heat pumps, ground source heat pumps, external wall installation, internal wall installation as well as loft installation top up.
AMCO is one of the UK’s long established renewable heating and electrical distributors boasting an extensive network and key strategic partnerships with a number of the markets leading manufacturers located in Asia, Europe and across the UK.
Through the strategic acquisition forecast annual revenues for the combined businesses are expected to exceed £35 million.
The acquisition provides significant growth opportunities for both trading entities to expand their specialist services to existing and new customers located across the UK.
The main driving force behind AMCO in recent years, Managing Director Steve Bentley, joined PHS Board of Directors, led by Russell Steelyard, from completion and also purchased a significant equity stake in the Buyer as part of the transaction.
PHS Founder and Managing Director, Russell Steelyard, said, “I am delighted to have completed the acquisition of AMCO and welcome Steve Bentley and the team to the PHS family. This acquisition puts us in a unique position in the marketplace and will accelerate our future growth. Special thanks to Patrick Lynch and Joe Potts of Castle Square, Michael Hall and Lucy Dougall and the Knights Team and Tim House and the SME Capital Team whom we look forward to working with over the coming months and years, all of which worked tirelessly to enable the acquisition to complete in a timely fashion.”
Led by Director Patrick Lynch and supported by Joe Potts, Yorkshire based dealmakers Castle Square Corporate Finance led on deal negotiations on behalf of the Buyer and ran a competitive funding process, seeking acquisition and growth capital finance to successfully complete the transaction.
After receiving multiple funding offers from a range of funding institutions across banks, challenger banks and debt funds, the specialist lender SME Capital, led by Relationship Director Tim House, emerged as the preferred funding partner. SME Capital provided acquisition finance and growth capital funding line to support managements growth business plan post completion.
Led by Corporate Partner Michael Hall and supported by Lucy Dougall, Knights provided corporate legal advice services to the Buyer, performing legal due diligence on the AMCO before delivering the legal merger and acquisition advice services to successfully execute the transaction.
Castle Square is an independent, specialist mid-market corporate finance boutique based in Yorkshire. Castle Square has a proven track record of successfully delivering corporate finance services on a wide range of clients based across the UK and internationally.
Patrick Lynch, Director at Castle Square Corporate Finance said, “Having advised PHS in 2020 on a development capital fundraising it is impressive to see their journey over the last three years and the substantial growth the PHS management team have achieved in this short time, as they now emerge as the UK’s leading renewable heating technologies specialist. The acquisition of AMCO forms a key strategic acquisition and the recruit of Steve Bentley will ensure continuity as well as providing the extensive expertise to help take the business to the next level.”
SME Capital provides bespoke long-term, growth capital and acquisition finance solutions to established businesses. SME Capital understand the importance of real and trusted relationships in the SME lending market and have dedicated Regional Directors based across the UK. By combining traditional lending expertise with the latest in data analytics, SME Capital support established UK businesses with their long-term objectives and business ambitions.
Tim House, Relationship Director at SME Capital, said “from our first meeting with Russell it was obvious he was committed to growing the PHS business and developing a group able to tackle the demand for renewables, We wish Russell success with the group and look forward to working with him moving forward.
Castle Square’s involvement as Corporate Finance Advisor was superb, providing a detailed level of initial information allowing us to make quick decisions and providing follow on detailed documents as part of our full credit underwriting process”
Knights is one of the fastest-growing legal and professional services businesses in the UK – ranked within the top 50 UK law firms by revenue, with specialists in all key areas of corporate and commercial law.
Mike Hall, Partner at Knights Sheffield Office, said, “We’re delighted to have assisted PHS with this strategic acquisition, which we have every confidence will prove to be a huge success for both PHS and AMCO. It has been great to see the growth PHS has achieved in the three years we have worked with them and this transaction puts Russ, Steve and the team in a very strong position to speed the development of PHS into the market-leading renewable heating specialist.”
Other advisors acting on the transaction included; Clarion Leeds office who provided legal advice services to SME Capital, Morton Legal advised the shareholders of AMCO and Smith Wilson provided financial advice services to the shareholders of AMCO.
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NOTES TO THE EDITOR
Yorkshire based Castle Square Corporate Finance offer pro-active corporate finance advice to clients throughout the UK, tailoring our service to our clients and their markets, giving us an enviable record of successfully completing deals, including acquisitions and mergers, Management Buy-Outs and Buy-Ins, finance raising and disposals.
Contact Details:
Kerry Webster (Office Manager)
Castle Square Corporate Finance
Tel: 0114 213 8353
Mob: 07709 715765
Email: Kerry. [email protected]
twitter: @castlesquarecf
website: www.castlesquarecf.co.uk
LinkedIn: www.linkedin.com/company/castle-square-corporate-finance
