Greens Power into New Era With MBO
27 January 2016
A historic Wakefield based supplier of heat transfer, economiser and industrial boiler products has been acquired in a management buyout (MBO) backed by investment firm Rcapital.
Management has acquired Wakefield-headquartered Greens Power from its Cayman-based parent Greens Holdings Ltd, which has been hit by solveny issues. Rcapital has provided funding to acquire 100 per cent of the share capital of the business and also agreed to provide a working capital facility to enable it to meet its growth aspirations.
Matthew Crewe, managing director of Greens Power, said:
"Greens Power has traded from Wakefield since the 1820s and has a thriving business, despite difficulties encountered in its wider group and parent, Greens Holdings.
"Greens Power is currently experiencing rapid growth, using its strong heritage, skills base and technology and has remained profitable and cash generative throughout."
Jamie Constable, chief executive of Rcapital, added:
"Whilst the company's former parent is subject to a provisional liquidation process, Greens Power is not distressed.
"The business has remained profitable through difficult times for the sector and the current pipeline is particularly strong despite the issues in the wider group which have naturally restricted growth.
"We anticipate rapid growth in the short and medium term and look forward to supporting this well established business in the next phase of its development."
The Rcapital team was led by Chris Campbell, with chief operating officer Phil Emmerson joining the Greens Power board following successful completion of the deal. Rcapital was introduced to the deal by KPMG Restructuring, with legal advice provided by Addleshaw Goddard and tax advice provided by RJP.
Richard Moran and Kaira Clarehugh of Leeds law firm Clarion advised the management.