Four Seasons Group Continues Acquisition Strategy
Leeds-based Four Seasons Group (FSG), the specialist air conditioning installation and maintenance business, has acquired High Wycombe-based HM Air Cooling (HMAC) for an undisclosed sum. The acquisition of HMAC adds a further £10 million of revenue resulting in combined proforma revenue for the Group in excess of £20 million and gives the Group critical mass while further improving geographical coverage.
The combined business boasts an impressive client list including H&M, William Hill, WH Smith, Ladbrokes, Nationwide Building Society, Waterstones, Costa Coffee, Swinton Insurance, Boots, La Senza, and Carphone Warehouse.
The Group, which employs 98 staff and has its headquarters in Leeds, has made the acquisition as the latest step in a ‘buy and build’ strategy with a view to becoming the leading UK specialist in its field. FSG made its first acquisition in May 2007, acquiring Surrey based Air Conditioning and Associated Services (AAS).
Tom Keeping, the CEO of FSG who took over the reins of the business when he led a Buy In Management Buyout in 2005, said “The management team is delighted with the opportunity to acquire HM Air Cooling and we are looking forward to continuing the successful growth of FSG both organically and through further value enhancing acquisitions,” he said.
Barclays Ventures, having provided equity finance in May 2007 to fund the acquisition of AAS, provided further equity finance, whilst senior debt and working capital was provided by Lloyds TSB Corporate Markets.
BTG McInnes Corporate Finance advised FSG on the deal that saw 100 per cent of the equity in HMAC being acquired from founder Henry Granata and fellow shareholder Dave Cooper. The former established HMAC in the mid 1980s and both will continue to play an important part in the future of both HMAC and the larger Group.
Dion Hirst, Investment Director at Barclays Ventures said: “We have worked with the management team for over 12 months and remain committed to building a specialist national player. The group is well set to build on its already impressive client base with this deal which expands its geographical reach. The deal also gives the group critical mass which will enable it to take advantage of the growth opportunities offered in the air conditioning sector.”
“We are delighted to be supporting the Group through this stage of its development and look forward to building a strong partnership that fully enables FSG to follow its considered, appealing strategy.” commented Rob Lawrence, Director at Lloyds TSB Corporate Markets’ acquisition finance team.
Andy Miller of BTG McInnes, who advised FSG, said: “The acquisition gives FSG better coverage of the growing UK market, significant economies of scale and enhances Group market share. This important second acquisition is likely to be followed by other similar deals as the buy and build strategy continues.”
Other advisors on the deal included Sean Fitzgerald and Nicola Frost of Cobbetts, advising FSG; Simon Owens of Hammonds, advising Lloyds TSB Corporate Markets; Mark Lister and Pete Melling of PKF, who carried out the financial due diligence; and Terry Leggett of MBD, who carried out the commercial due diligence.
