Thermofuse

Securing the right value and structure for a specialist pipeline contractor

Founded in 1995 and based in Doncaster, Thermofuse is a specialist pipeline contractor providing fabrication, supply, installation, testing and commissioning services for gas, water and fire protection projects across the UK.

With a team of around 45 employees, the company supports critical infrastructure projects across every major building sector, combining specialist technical expertise with the ability to deliver complex projects and respond to urgent customer requirements.

As the shareholders considered the next stage for the business, they wanted to achieve the right combination of value and deal structure while finding a buyer that would provide Thermofuse with the opportunity to continue growing.

Having built the business over almost three decades, it was also important to the shareholders that the transition to new ownership was managed carefully and that they found a partner they could work with effectively beyond completion.

“As the business moves to the next phase of its growth and expansion, we are delighted to join Cullum Group and look forward to where the next stage of this journey takes us.”

Paul Hurst, Managing Director, Thermofuse

Taking the pressure off shareholders and securing the right outcome

The shareholders instructed KBS Corporate to manage the sale process and identify a suitable buyer capable of supporting Thermofuse’s continued development.

Charlie Neville, Deal Executive at KBS Corporate, led the transaction, taking responsibility for managing the process and providing the shareholders with guidance throughout what can be a complex and time-consuming period.

The marketing process generated interest from multiple prospective acquirers, with several offers received during the process.

While some initial proposals did not fully meet the shareholders’ expectations, one acquirer ultimately emerged as the standout candidate, demonstrating a strong strategic fit and the ability to deliver the right outcome for the shareholders.

KBS played a key role in negotiating both the deal structure and the treatment of the company’s balance sheet. Through careful commercial negotiations, the final terms were structured to maximise the shareholders’ earnings and deliver the combination of price, structure and post-sale obligations they were seeking.

For the shareholders, the experience extended beyond simply securing a buyer. KBS managed the process from initial marketing through to completion, providing ongoing guidance, managing negotiations and keeping the transaction moving.

“Selling a business can be a complex and sometimes stressful process, but the team guided us every step of the way with professionalism, clear communication and sound advice.

“They took the time to understand our business, found suitable buyers, managed the negotiations effectively and kept everything moving towards a successful completion.”

Paul Hurst, Managing Director, Thermofuse

Negotiating the right structure to maximise shareholder value

Once Cullum Group had emerged as the preferred acquirer, KBS worked closely with both parties to negotiate the terms of the transaction.

A key priority was ensuring the Heads of Terms clearly reflected the agreed commercial position, helping minimise the potential for disagreements or unexpected issues from the transaction.

KBS negotiated the treatment of the company’s balance sheet and surplus cash, securing terms that enabled the shareholders to maximise the value they received from the transaction.

The negotiation process progressed relatively smoothly, with the clarity established at the Heads of Terms stage helping the deal move efficiently towards completion.

The final structure delivered the outcome the shareholders had been seeking, providing certainty around both the financial value of the deal and their obligations following the sale.

The shareholders particularly valued the responsiveness and transparency of the KBS team throughout the process, giving them confidence that they were being supported and kept informed at every stage.

“What impressed us most was their responsiveness, honesty and commitment to achieving the right outcome for everyone involved. We always felt well informed and supported throughout the process.”

Paul Hurst, Managing Director, Thermofuse

A strong strategic fit emerged from a competitive process

The sale process generated interest from multiple potential buyers, allowing the shareholders to assess a range of opportunities before selecting their preferred partner.

Cullum Group emerged as the outstanding acquirer, offering a strong combination of strategic fit and commercial terms.

The acquisition provides Thermofuse with the backing of a larger engineering group while allowing the business to continue building on its existing technical expertise and customer relationships.

For the shareholders, Cullum Group represented a buyer they could feel confident working with beyond completion, providing reassurance that the business was entering the next stage of its development with the right partner.

Paul Hurst ultimately described the experience as significantly less daunting than it might otherwise have been and would recommend KBS to other business owners considering a sale.

“Their expertise and dedication made what could have been a daunting experience much smoother, and we’re delighted with the successful outcome.”

Paul Hurst, Managing Director, Thermofuse

Strengthening Cullum Group’s capabilities in the water and industrial sectors

Based in Heanor, Derbyshire, Cullum Group is an engineering business with operations across the UK and comprises six subsidiary businesses.

The acquisition of Thermofuse strengthens the Group’s capabilities across the water and industrial sectors, adding specialist pipeline expertise and an established team with extensive experience supporting critical infrastructure projects.

Thermofuse’s ability to scale for larger and more complex projects, alongside its capability to provide urgent support to customers, complements Cullum Group’s existing offering.

The acquisition forms part of Cullum Group’s wider growth strategy with the Group continuing to pursue opportunities to expand its capabilities and strengthen its position across the sectors it serves.

“We support critical infrastructure products and services across several diverse sectors. Thermofuse’s technical offering and culture complement this, both in its ability to scale for larger and complex projects as well as offering urgent support to its customer base.

“We look forward to working with the incumbent management team to support the business’s growth strategy.”

Mark Jansen, Managing Director, Cullum Group