A global manufacturer has swooped for the home services division of County Durham based Pacifica Group in an undisclosed deal.
German firm Viessmann has completed the acquisition of the division in partnership with its existing senior management team, which will lead to it making a multimillion-pound investment into a renewables-driven home services operation in the UK.
Viessmann, which manufactures climate control products and refrigeration solutions as well as industrial electricity, heating and cooling systems for commercial applications, has acquired Pacifica Home Services (PHS), in conjunction with its management team from Pacifica Group, a portfolio company of European growth investor Synova.
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PHS installs and maintains home heating systems and provides insulation services to a cross section of customers including utility companies, housebuilders, housing associations and private customers. The firm has around 240 employees and last year generated revenues of around £45m.
Synova will retain ownership of Pacifica Group together with its management team, which includes its appliances services and UK warranty divisions.
Viessmann said its investment will enable cutting edge, green technology expertise to be further developed by the home services business, as well as expansion into a full range of digital solutions.
The firm, which has already made 22 international acquisitions in countries including South Africa, Australia and the Netherlands, will benefit from PHS’s well-established UK domestic energy services.
Kevin Brown, CEO of Pacifica Group, will take on the role of non-executive director in the new standalone home services business, while Phil Pallister will lead PHS as its CEO.
The undisclosed deal also Pacifica’s Oakes Energy Services business, which provides dedicated renewable energy solutions, such as air and ground source heating and solar PV for both domestic and commercial property markets.
Staff working for PHS and Oakes Energy Services will continue as employees of the home services business under the ownership of Viessmann, transferring with the business under the terms of the deal.
Mr Brown said: “This is a significant investment from a major EU-based company into the UK, highlighting that Britain remains an attractive proposition for international organisations looking to increase their market share.
“It is also a demonstration of Viessmann’s ambition to make a major contribution to achieving a low carbon future as part of a long-term commitment to the UK.
“Its growing focus on renewable technologies, including ground and air source heating and solar energy will be enhanced by the expertise and experience that already exists in PHS along with the extensive after-sales capabilities and established supply chain that will provide a strong foundation for the future.”
Mr Pallister said: “PHS has become one of the UK’s largest providers of home heating, insulation and renewable energy systems and we are looking forward to working with Viessmann to further expand our market position and help it strengthen its green energy solutions activity.”
Timo Tauber, managing director Viessmann Investment GmbH, said: “With the acquisition of PHS, we are strengthening our services and sales activities within the UK for the long term. Even more importantly, we are positioning ourselves sustainably in the strongly-growing British heat pump market.”
Advisors to Pacifica Group and PHS were Cavu Corporate Finance and Deloitte LLP. Legal advice was provided by Ward Hadaway and Addleshaw Goddard LLP. Bank funding was provided by HSBC.
