BG Energy Solutions (BGES), one of the UK’s leading independent building management and energy solutions companies, has announced the successful completion of its management buy-out (MBO) with crucial funding from fintech lender, ThinCats.
With its head office in Sheffield, BGES was founded in 1995, specialising in the building controls sector. Since then, the forward-thinking company has made a name for itself by providing unique in-house energy solutions for its new and loyal customer base.
This includes its flagship product, VISTA, an integrated energy optimiser. By analysing weather forecasts, energy tariff data and building operation trends, it can reduce energy waste and help businesses meet their carbon reduction targets.
Having built the business from the ground up in 1995, BGES founders Duncan Biggins and Steve Gunn then looked to their next business venture. In order to ensure BGES’s continued success, they needed to create an exit strategy that would prioritise business continuity. They hired Gareth Barber as managing director in 2016 to help facilitate their exit plan.
After managing the business’s strategic goals for three years and experiencing year on year significant growth, Gareth and the management team chose to implement a management buy-out. In order to facilitate the exit plan, the management team needed a unique debt-facility. After inviting several financiers to pitch, BGES ultimately chose ThinCats, to facilitate the deal.
Following an introduction by Matt Milnes and Chris Sellars at 7 Legal Finance (who provided corporate finance and legal advice to the vendors), the ThinCats team, led by Kevin Steven, Director of Business Development, presented BGES with a credit-backed deal within three months. Dean Gormley from Irwin Mitchell provided legal support to ThinCats whilst Peter Crawford of Freeths LLP in Sheffield provided support to management.
In conjunction with Gareth, Mike Dauris (head of projects) and Simon Shaw (senior project manager), acquired a controlling stake in the business. As key figures in the company, Mike Dauris has more than 23 years' experience with the company, and Simon Shaw has been part of the BGES business since the age of 21 in the role of Project Manager.
Gareth Barber, managing director of BG Energy Solutions, said: “We are delighted to officially announce our joint ownership of BG Energy Solutions. Over the past three years, the business has demonstrated strong growth, and is well positioned to capitalise on new opportunities. I would like to thank the original co-founders of BGES, Duncan Briggs and Steve Gunn for their support and guidance over the past few years. I would also like to thank Kevin from ThinCats, in particular, who worked tirelessly to facilitate this successful deal from day one.”
Kevin Steven, director of business development for South Yorkshire, ThinCats, said: “ThinCats' tailored funding facilities are ideally suited to businesses going through event-driven change, such as management buyouts. We were delighted to support the management team with the desired funding to complete the MBO. We wish them every success with this exciting opportunity to take the business to the next stage of growth.”
Matt Milnes, Associate at 7Legal and Finance added, “We worked closely with the vendors and the management team to secure a positive outcome for both parties. Being the first transaction we have completed with ThinCats we were pleased with their approach to the proposal and the level and structure of the funding package provided.”