A former investor in the likes of restaurant chain Little Chef has acquired a division of a collapsed roofing contractor in a move that has saved over 100 jobs.
Rcapital has completed the acquisition of insulation and solar PV service provider Avonside Energy. The deal comes after Greater Manchester-headquartered Avonside Group entered administration last week.
The transaction incorporates the Avonside Renewables business which has also been rescued by Rcapital as part of the deal.
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The acquisition has been a solvent deal and Avonside Energy is not part of the wider group insolvency.
Headquartered in Leicester, Avonside Energy has operations in the West Midlands, East Midlands, Glasgow, Leeds, Newcastle, Warrington and Stevenage.
Avonside Energy is expected to generate revenue of over £15m this year and is profitable and cash generative. Its major customers include Barratt Homes, Taylor Wimpey, Persimmon Homes, Redrow and Miller Homes.
Rcapital has also previously invested in the likes of Tie Rack and newspaper group Archant. Its current portfolio features Nasmyth Group, Cluttons LLP and Patrick Parsons Group.
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."
Chris Campbell, partner at Rcapital, added: "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."
Kirstie Provan , partner at Begbies Traynor and joint administrator of Avonside Group Services Limited, said: "We are delighted to have completed the solvent rescue of the energy division of the Avonside Group, securing the preservation of a significant number of jobs and the future of the business.
"The purchase by Rcapital gives the business a solid platform from which to move forward, and we wish the management team every success."
Rcapital was advised by Browne Jacobson LLP. Begbies Traynor was advised by Pinsent Masons LLP.
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