The accounting and management consultancy firm BDO LLP advised on the sale of two fast growing companies, which means an increase in M&A activity in the Midlands market.
The Midlands team acted as M&A advisor to all shareholders of B38 Group Holdings, with the team being led by Satvir Bungar, head of M&A in facilities.
B38 Group – a nationwide provider of critical, compliance-driven facility management services with regional offices in Birmingham and Derby – was sold to Leicester-headquartered Bellrock, the technology-based compliance and risk management company. This is B38’s second facility management transactional sale to Bellrock after selling its market-leading profiling consultancy in 2017.
Providing a diversified offering through a mix of hardware and soft facility management services across the UK with a strong presence in the North of England and the Midlands, the company works with high profile companies in the grocery, retail and student accommodation markets.
Satvir Bungar said, “B38 is an exciting and rapidly growing privately held company that has been a real success story during the pandemic. This deal is an excellent partnership with a Bellrock company, thanks to the potential for synergies across a range of service lines. Given B38’s strong market maturity, this is an exciting business in the FM sector. “
The B38 BDO M&A team also included Matt Goodliffe and Gabriella Eeles.
The M&A team also served for all shareholders of Prolectric Services – the UK leader in off-grid solar power solutions.
The privately held company offers solar technology that enables customers to measure the reduction in CO2 emissions compared to diesel product alternatives and has been acquired by UK-listed plc Hill & Smith Holdings – the international group headquartered in sustainable infrastructure and safe transportation solutions offers in the West Midlands. The deal has an initial value of £ 12.5m which could increase to £ 18.2m based on financial performance targets.
Prolectric has grown rapidly in recent years due to the continued transition from fossil fuels to low carbon technology and the need to reduce noise pollution due to government legislation and customer requirements. High profile projects include the Hinkley and Sellafield nuclear sites and the NHS Nightingale Hospitals.
Bungar said, “The combination of market demand – fueled by the transition from fossil fuels to renewables – and a unique offering from Prolectric makes this an extremely important business in the marketplace.
“Unsurprisingly, the company has attracted a lot of interest from both private equity investors and trade buyers, given its rapidly growing momentum and position as the leader in solar energy – an area of the market that continues to grow and we will offer long-term growth potential as the “green agenda” spreads across the economy.
“The Prolectric product portfolio is a real alternative to traditional technology and offers the end user significant advantages in terms of costs, labor and maintenance. The collaboration with Hill & Smith is a perfect fit for Prolectric. “
Alan Chan was also part of the Prolectric BDO M&A team.
Bungar added, “The FM sector – both in the Midlands and the UK – is rich in innovative companies like B38 that push the envelope in service. Despite the economic background, they are extremely attractive to larger companies looking to expand their presence in localized and global markets.
“The FM market, like many others, has been compressed by COVID-19, but it is gratifying to see how it has grown in importance due to the vital role it played on the front lines during the pandemic.
“As the economy opens up, we expect the number of commercial and private equity deals to increase as buyer confidence returns. We expect this to grow significantly as the UK follows the government’s roadmap to recovery in the months ahead. “