Clearwater advises on Renovo’s second acquisition

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Clearwater Corporate Finance advised the UK buy and build specialist Sovereign Capital on the acquisition of Quadron Property Services Limited, the second transaction by Sovereign’s Renovo Services Group.

Established in 1993, Quadron is a leading provider of building fabric maintenance services with a wide portfolio of contracts across the South West of England and Wales. The acquisition allows Renovo to deliver both gas maintenance services, provided by 1st Saxon-Clenmay which was acquired in July 2008, and now fabric maintenance services to local authority and commercial customers across the South of England and Wales. It makes Renovo the largest independent provider of its type in the region.

Commenting on the transaction, George Williams, assistant director at Sovereign Capital, said: “With sales in excess of £30m, the Quadron acquisition brings both a diversified client base and economies of scale to Renovo, creating a major buy and build consolidator in the region.”

The acquisition is the fourth deal completion on which Clearwater has advised within a ten-day period. The others were the acquisition of Auto Windoscreens by Arques Industries AG of Germany, the sale of consulting and structural engineers Flint & Neil to COWI A/S of Denmark, and the sale of PFW Aroma Chemicals of Holland to an Indian investor group.

The Clearwater team was led by Paul Jones and supported by Nick Holder and Pete Templeton. Paul Jones said: “This latest acquisition further enhances Renovo’s scale of service capability in the South and South West, which gives it a clear advantage in bidding for new contracts. Renovo provides an attractive opportunity for Sovereign to mirror the success it has achieved with its other maintenance services group, Kinetics.

“The deal is also the seventh by Clearwater in the social housing sector. The market is consolidating as social housing clients increasingly prefer larger suppliers and many smaller companies are discovering that their best chance of maintaining their profitability is to become part of a bigger group. Clearwater’s in-depth knowledge of the sector can help companies to find the right match, whether they are seeking buyers or acquisition targets, and to achieve the optimum price.”