EnServe Group

Activity
Utility and energy outsourcing
Transaction value
€424 million
Acquired
Dec 2010
Realised
Jan 2016
Sector
Business Services
EnServe Group

Business
Cinven acquired Spice plc in December 2010 (since rebranded as EnServe Group in September 2011). EnServe Group is a provider of outsourced infrastructure support services in the fields of Utility and Energy, principally in the UK and with a growing international presence.

EnServe Group was founded in 1996 from an original contract serving Yorkshire Electricity. From this single contract worth £3 million per annum, EnServe Group has grown organically and by acquisition to in excess of £300 million turnover per annum. At acquisition, EnServe Group had four main divisions:

  • electricity infrastructure, engineering, design, and consultancy services to distribution networks and the private sector;
  • water network infrastructure, installation, maintenance, drainage, and specialist consultancy services;
  • energy efficiency, consultancy, and procurement services; and
  • billing services focused on imbalance analysis and recovery for the utility industry.

Cinven acquired EnServe Group in a public-to-private transaction for approximately £360 million in December 2010. Following Cinven's acquisition and concurrent with the de-listing of EnServe Group, Cinven announced the appointment of Sir Roy Gardner as Chairman.

Strategy
EnServe Group has leading market positions in sectors that are strongly supported by environmental and regulatory drivers. There is a significant investment need and demand for outsourced infrastructure and engineering services from electricity and water network operators and a growing demand for energy efficiency and consultancy services.

EnServe Group, with the new leadership and the backing of Cinven, is very well-placed to take advantage of these positive industry trends. Under Cinven's ownership, EnServe Group intends to focus on further expanding its customer offering across the utility and energy outsourcing sectors with an emphasis on organic growth and potential acquisitions, as well as expanding its international capabilities and achieving operational efficiency improvements, whilst positioning the divisions for potentially separate exits.

Progress
Whilst undertaking the operational improvements, Cinven has commenced the break-up strategy for EnServe Group.

In February 2011, EnServe Group announced the sale of its Facilities Services Group business to NBGI Private Equity for a consideration of £9 million.

In February 2012, EnServe Group announced the sale of its Utility Management Services (UMS) business to BCW Group for an undisclosed consideration.

In April 2012, EnServe Group announced the sale of its Mechanical and Electrical Training (MET-UK) business to Pearson for an undisclosed consideration.

In July 2013, EnServe Group announced the sale of its Energy division (Inenco Group) to Vitruvian Partners for an undisclosed consideration. Inenco Group nearly doubled EBITDA under two and a half years of Cinven ownership.

This has afforded the EnServe Group the operational flexibility to invest in its core services and focus on profitable contract renewals.

In January 2016, Cinven fully realised  its investment in EnServe Group ('EnServe' or 'the Group'), following the sale of the business to Rubicon Partners and Grovepoint Capital for an undisclosed amount.  The sale of the Group completed on 15 January 2015.