COTSWOLD ENERGY GROWTH TRAJECTORY INSULATED BY SCIS ACQUISITION
Fabio Rambelli, Associate Director at KBS Corporate, has advised on the sale of Cotswold Energy Group Ltd to an industry-leading insulation provider.
Cotswold Energy was founded by three friends with varying backgrounds, looking to establish a customer-centric business which can transition homes into the 21st century.
The Gloucestershire-based company is well recognised throughout the region for its commercial and domestic solutions, including air source and ground source heat pumps, as well as solar PV.
Shareholders Jonathan Bonnar, Robin Hodge and Aaron Stuart-Kelso instructed KBS on the sale as part of Cotswold Energy’s growth strategy.
Fabio advised: “Jonathan, Robin and Aaron were looking to secure the value of the company while simultaneously sourcing capital investment.”
Senior Research Analyst Charlie Burrows worked alongside Fabio to identify a suitable acquirer during the outreach process.
South Coast Insulation Services Ltd (SCIS) was subsequently approached by Charlie owing to the notable synergies with Cotswold Energy.
“While SCIS is primarily engaged in installing insulation, Cotswold Energy was a chance to diversify — the fit was really there,” said Charlie.
SCIS is a trusted Tier 1 partner of several of the big six energy suppliers, capable of securing long-term funding for housing associations and property owners as part of its energy efficiency service package.
Commenting on the acquisition, SCIS CEO Nicolas Gillanders said: “We’ve been able to acquire Cotswold Energy in a move that gives us an opportunity to build on our existing offering as like-minded businesses, with a shared goal of helping customers reduce their carbon emissions.”
Harrison Clark Rickerbys and Foot Anstey supported the transaction as the solicitors for the two parties, while SCIS was assisted by PKF International and FRP Advisory as due diligence and corporate finance advisors respectively.
Fabio added: “It has been an incredible pleasure to work with the Cotswold Energy shareholders and I am very happy we have been able to secure a deal for them. I have no doubt SCIS and Cotswold Energy will have successful futures and I wish all involved the very best.”
Looking ahead, Fabio anticipates considerable activity across the renewable energy M&A space in the foreseeable future.
“Increases in energy costs and price caps will likely drive the demand for renewable systems in domestic and commercial settings,” said Fabio.
“The Net Zero Strategy will likely see a bigger promotion of renewable solutions. This sector is still fairly fragmented, so I expect more and more M&A activity over the coming years with key players looking to consolidate the market as time goes on.”