Foresight Group has completed a £3.8m investment into an electric heating specialist that plans to launch a range of air source heat pumps as it encourages people to decarbonise their homes.
Foresight has backed the Electric Heating Company (EHC), based in Blantyre, South Lanarkshire, which supplies electric boilers, heaters and water cylinders to housing associations, developers and private homeowners across the UK.
The deal features the first investment from Foresight's £60m Scotland Fund, with other investment from the Foresight East of England Fund and the Foresight Scottish Growth Fund.
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Foresight says its investment will support the company’s management team with its growth plans – enabling it to create more jobs, expand its product range and increase its distribution reach. EHC plans to launch its first range of air source heat pumps this year.
Following the investment, David Leng, an executive with extensive experience at building product distributors, has joined the board as executive chair.
Daniel Halliday, director at Foresight, said: "The EHC team has built a strong, competitive position in the domestic electric heating market and has demonstrated significant growth. We are excited to support the team in delivering their future growth plans that will contribute to home decarbonisation in the UK.”
Bill Walters, managing director at EHC, said: "EHC has witnessed significant growth across our established customer base. We are committed to seizing market opportunities as the UK moves towards a net zero carbon future.
"It was important that we chose a partner with the vision and energy to assist our growth and we look forward to working with the Foresight team.”
Foresight's £60m Scotland Fund was announced last month and was backed by cornerstone commitments from Strathclyde Pension Fund and British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank.
It is Foresight's second fund dedicated to Scotland, after the £32m Foresight Scottish Growth Fund was launched with the support of the Scottish Government in 2019.
Ian Jamison, investment manager at Strathclyde Pension Fund, said: “The investment into EHC is an exciting opportunity for the Foresight Scotland Fund to support a well-established business in a growing market. EHC has a strong reputation for the quality of its products and advice and we are looking forward to seeing the company’s next stage of growth.”
Judith Hartley, CEO at British Business Investments, said: “We are delighted to see the Foresight Scotland Fund complete its first investment, following our commitment earlier this year.
"British Business Investments’ mission is to improve access to alternative finance for smaller businesses across the whole of the UK, while supporting the UK’s transition to a net zero economy. This funding means EHC is well-positioned for continued growth whilst also making a meaningful impact on the decarbonisation of heat in the home.”
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