Hampshire-based 1st Saxon-Clenmay provides new buy-and-build platform for Sovereign Capital

1st Saxon-Clenmay Group, one of the largest regional gas and electrical maintenance providers in the South of England, has been acquired by UK Buy & Build specialists Sovereign Capital with backing from Clydesdale Bank.

Based in Fareham, Hampshire, 1st Saxon-Clenmay employs 350 people at locations along the South coast and provides maintenance services for local authorities and social housing providers. The company, which has a turnover of £22.5 million, was formed as a result of the merger in 2004 of Clenmay Heating and 1st Saxon Property Services, both of which had been established since the 1970s.

The deal will allow the three shareholders to realise their investment in the business. Malcolm Southey, who has no day-to-day involvement in the company, will relinquish his role as chairman. However managing director Ian Gilson and operations director Jason Bartlett will continue in their current positions.

1st Saxon-Clenmay is the first acquisition by Renovo Services Group, which Sovereign Capital aims to build into the leading provider of reactive mechanical, electrical and fabric maintenance services to social housing landlords in the South of England and Wales.

Sovereign Capital has substantial experience of the facilities management sector, having built three successful groups in LPM, Kinetics and Lindley. Clydesdale Bank has supported all the transactions for the Kinetics Group.

Ian Mansell, director with the Bank’s Specialist & Acquisition Finance team said: “The acquisition of 1st Saxon is an attractive market opportunity for Sovereign to create a buy-and-build consolidator providing gas and electrical maintenance services to social housing landlords in the South of England and Wales.  The maintenance market is consolidating and clients’ preference for larger suppliers is making it increasingly difficult for smaller providers to compete, providing a strong incentive for owners to sell. Integrating such businesses into a larger group allows them to benefit from economies of scale and makes them well placed to win new contracts.”