Rcapital Announces Acquisition of Avonside Energy

PRIVATE INVESTOR Rcapital has completed the acquisition of the insulation and solar PV arm of Avonside Group: Avonside Energy Limited.

Avonside Energy

Avonside Energy is a standalone division of the Avonside Group that entered insolvency proceedings on 7 September.

The transaction incorporates the Avonside Renewables business which has also been rescued by Rcapital as part of the deal. Avonside Energy was acquired by its management team. The acquisition is a solvent deal and Avonside Energy is not part of the wider group insolvency.

Bill Rumble, Managing Director at Avonside Energy said: “I’m delighted to confirm that agreement has been reached for Avonside Energy to be acquired by its management team with the support of Rcapital. This means it’s business as usual for Avonside Energy and the investment brought by Rcapital will mean we are in an even stronger position to make a major contribution towards the significant challenge our New Build customers face in satisfying the increased energy efficiency demands.”

Headquartered in Leicester, Avonside Energy has a national presence with operations in the West Midlands, East Midlands, Glasgow, Leeds, Newcastle, Warrington and Stevenage. This transaction will ensure the preservation of 100 jobs across the country.

Avonside Energy will generate revenue of £15 million this year and is profitable and cash generative, the company says. It is a part of the new build supply chain, with customers including Barratt Homes, Taylor Wimpey, Persimmon Homes, Redrow and Miller Homes.

Chris Campbell, Partner at Rcapital said: “Avonside Energy is a profitable business and a significant employer across the country with an enviable blue-chip client base. We are delighted to be supporting Bill and his team and firmly believe that Avonside Energy will be integral to helping the UK achieve its decarbonisation strategy of net zero by 2050.”

In the construction sector, Rcapital has previously owned Rock Roofing Contractors, Alsop Architects and Plowman Craven.

Rcapital has appointed Nick Alexander as Chairman to the management team.

Rcapital were advised by Browne Jacobson LLP. Begbies Traynor were advised by Pinsent Masons LLP.

>> Read more about the Avonside acquisition in the news