Energy consultancy sold for £22m

Global energy consultancy, McKinnon & Clarke (M&C), headquartered in Fife, has been sold to mid-market growth investor Lyceum Capital for £22million.

The independent consultancy, one of the largest purchasers of energy in Europe, advises business users on energy and environmental legislation in regulated and deregulated markets across twenty-one countries.

M&C’s latest turnover for 2008/2009 is £22.7m and is expecting this to soar to £60m by 2013 as more businesses turn to the consultancy to manage their energy purchasing and complex environmental responsibilities.

An aggressive acquisition strategy in Europe and Australia will also contribute to the company’s rapid growth.

Following the deal, founder Sandy McKinnon will retain a minority share in the business and M&C’s CEO, Simon Northrop, will continue to lead the company.

Daniel Adler and David Harland from Lyceum Capital will join the board, which will be further strengthened with the arrival of Bill McCall as chairman and Gerry Higgins who has been appointed executive vice chairman.

Mr Northrop commented on the sale: “Lyceum Capital has brought to the table expertise and funding which will see M&C dominate the energy consultancy market on a global stage.

“There is no question that with their backing, we’ll be a significantly bigger business in four years time.

“With an ambitious acquisition plan in place targeting companies in Europe and Australia, we will be able to offer our clients unrivalled scale and expertise.

“As environmental legislation rises higher up the business agenda, organisations will need our services to ensure they are operating to maximum efficiency and within the law.”

M&C is one of the few consultancies that offer impartial advice independent of any energy supplier. Its global reach, which delivers 40% of the company’s turnover, was also crucial to Lyceum Capital’s decision to invest.

Daniel Adler Partner from Lyceum Capital said: “M&C is the leading energy consultancy, boasting an unrivalled reputation and service offering in an international market that is growing year on year.

“We’ll be providing funding, operational input and strategic guidance to ensure M&C reaches its full potential, resulting in better services for their clients, more opportunities for employees and a good return for our investors.

“We’ll be working in partnership with management to develop M&C into a robust and sustainable business, with strong long-term growth prospects.”

M&C employs 373 staff, 87 of whom are based in Scotland.

Under the growth strategy, the company will be targeting large national and international businesses with energy requirements exceeding £5m.

It will also focus on the environmental and risk management part of the business where there is much opportunity to add value to M&C’s core client offering.

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