Stonehouse's Cotswold Energy Group sold to Hampshire company

A Hampshire-headquartered insulation services provider has acquired renewable energy M&E firm Cotswold Energy Group, in a deal supported by FRP Corporate Finance in Bristol.

Fareham-based South Coast Insulation Services (SCIS), which is a tier one partner to three of the ‘Big Six’ energy suppliers, has acquired the Gloucestershire-based business for an undisclosed fee. The deal will see Cotswold Energy Group’s co-founders, Jon Bonnar and Robin Hodge, remain with the business as it continues to operate as a separate division and standalone brand to SCIS.

The deal will enable SCIS, which has a secondary office in Devon, to diversify its services into additional energy efficient technologies and practices, including ground and air source heat pump installation. Established in 2010, SCIS’ clients include housing associations and property owners, with the firm delivering fully integrated insulation solutions as well as funding support. 

Cotswold Energy Group offers mechanical & electrical installation services via an in-house team of accredited engineers. The business was founded by Jon Bonnar, Robin Hodge and Aaron Stuart-Kelso in 2018, with Aaron Stuart-Kelso now exiting the business.

The deal was led by director Alex Sargeant and partner Mark Naughton, from the FRP Corporate Finance Bristol office, who provided full buyside support to SCIS, encompassing both M&A and debt advisory services. The team worked closely with buyside legal adviser James Crotty, corporate associate at Foot Anstey, with funding for the deal provided by NatWest - led by Mikael Rosen and Richard Emblen. Cotswold Energy Group was advised by KBS and Harrison Clark Rickerbys.

SCIS CEO Nicolas Gillanders said: “The importance of the climate emergency cannot be understated and we are seeing that reflected in the demand for our services, as homeowners, private landlords and housing providers review the energy efficiency of their properties in light of both this and the cost-of-living crisis. 

“We’ve been able to acquire Cotswold Energy Group in a move that gives us an opportunity to build on our existing offering as likeminded businesses with a shared goal of helping customers reduce their carbon emissions. I’d like to thank the team at FRP, and our advisers at Foot Anstey, for their support on this deal, as well as the team at NatWest for financing the transaction.”

Alex Sargeant, director at FRP Corporate Finance, added: “This acquisition represents a significant expansion of SCIS’ capabilities and services, and we are confident that it will bolster their leading position in the growing home energy efficiency market. It’s rewarding to see two complementary businesses come together to benefit from one another’s knowledge and expertise to drive incremental growth. It’s been a pleasure advising Nicolas and his team, and we wish them well for the future.”

Mikael Rosen, relationship director at NatWest, said: “We are delighted to be supporting SCIS with this acquisition which supports the continued growth of the business and breadth of the service offering. The management team led by Nic Gillanders are ambitious and passionate about the role they play in supporting the decarbonisation of the UK’s housing market, an area that closely aligns with our purpose as well as our ambition at NatWest to support sustainability focused lending.”