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Independent supplier Spark Energy has announced that a management buyout of the company is close to completion with four large institutional investors.
The firm – which supplies energy to the lettings and social housing sectors – said it wants to “significantly increase access to growth capital” to allow “rapid expansion”.
The directors of the company are recommending the deal to its shareholders, and insist they will realise a return on their investments. The support of 75 per cent of shareholders is required before the offer closes on 14 July.
Four large institutional investors, including a major UK pension fund, a European family office and a Middle Eastern investment bank, are backing the deal, which Spark said will increase the financial strength of the business, and is expected to deliver turnover of £125 million in the year to end June 2016.
Spark Energy chief executive Chris Gauld, who is leading the buyout, said: “This is the natural next phase in Spark’s evolution. Whilst we can be proud of our achievements so far, we have big plans for an exciting future.
“The new institutional backers have the extra financial strength and experience to enable us to fund and accelerate the next steps in our ambitious plans, and to realise our full potential. We are confident that this deal will go through and excited about the opportunities ahead of us.”
The value of the deal has not yet been disclosed, but if approved the transaction is expected to complete in August.
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