Clearwater International advises on Stroma MBO


Mid-market private equity house LDC has backed the management buyout of Stroma, in a deal advised by Clearwater International. The value was not disclosed.

Based in Castleford, Stroma was established in 2002 by Matt Ferguson, Rob Coxon and Steve Turner. The business now employs over 200 people across two divisions: Stroma Certification, a leading provider of training, accreditation and software products used throughout the UK energy assessment market; and Stroma Technology, a specialist provider of energy-related technical consultancy services including assessment and advice relating to the energy performance of buildings.

Clearwater International provided buy-side financial advice, led by Partners Paul Jones and Mark Taylor. Paul and Mark were supported by Director Nick Horrocks, Assistant Director Tom Barnwell and Manager Aidan Miller.

Paul Jones noted: “Clearwater International is delighted to provide debt advisory and strategic buy-side support to LDC on its investment in Stroma. Stroma has a strong market position in both certification and fieldforce software within the domestic and commercial energy market and is extremely well placed to take advantage of the exciting growth opportunities this market is providing . Changing legislation and an increasing focus on energy efficiency means Stroma’s software solution will become ever more relevant over the next few years.”

Investment Directors Simon Braham and Chris Wright led the LDC team. Braham commented: “Since launching Stroma in 2002, Matt Ferguson and his team have led the evolution of Stroma from a technical consultancy to a software-led certification provider to the UK energy efficiency industry. Stroma is a high quality training provider which has developed software apps that reduce the complexity of reporting and compliance requirements for its users. We anticipate continued strong demand for Stroma’s services through further extension of its training and software services and strong expertise in energy-related technical consulting activities.”

Matt Ferguson, Co-founder of Stroma and Managing Director of Stroma Certification, said: “After a decade of developing Stroma and establishing our leading position in the market, it is the ideal time to bring in an experienced investment partner. The team at LDC not only offers significant financial support, but also experience that will help us drive further growth in the future.”

RBS provided the debt finance in support of the transaction. Altium and DWF advised the vendors while Addleshaw Goddard, PMSI & DSW advised LDC.