NVM has invested £9 million in the management buyout of Dale Power .
6 February 2018
NVM Private Equity (NVM) has backed a management buyout of Dale Power Solutions (Dale), one of the UK’s leading providers of reliable secure power solutions. Dale provides its customers with systems that ensures reliable secure power for applications where power is critical. It serves organisations in many diverse sectors including telecoms, healthcare, oil & gas and utilities, as well as the power distribution network itself. New opportunities for Dale in areas such as energy storage, are expected to complement strong organic growth in its core business, in what is a rapidly developing energy market in the UK. The investment from NVM will also provide scope to consolidate its position as the leading independent UK provider of these services through acquisition. The deal is NVM's first management buyout from NVM Private Equity Vintage III LP.
Headquartered in Scarborough, Dale employs more than 270 people across the UK, including a nationwide team of more than 70 service engineers. Dale has a rich history in the power market and can trace its roots back more than 80 years to 1935. With its strong brand reputation based on technical excellence, design capability and high quality service back up, the business has built up an impressive list of global blue-chip clients including NEC, Siemens, National Grid, ISG, Mitie, Northern Power Grid, Vodafone and Thames Water, who trust business critical operations to Dale.
Tim Wilkins, Dale’s CEO, is an experienced industry professional who has more than 30 years experience in the power sector. Tim has deep sector knowledge and has built a strong operational team at Dale who have driven impressive profit growth in the business over the last three years. The executive team is complemented by Chairman, Denzil Lee, who will continue in the role following the MBO. He has a long track record of success, working in both corporate and private equity backed businesses and has been instrumental in driving the strategic direction of the business in recent years.
Executive Chairman, Denzil Lee of Dale Power Solutions, said: “The team at Dale is excited with the new opportunity of working with NVM to further develop our core business and exploit the significant opportunities in the new and fast developing energy storage sector. NVM throughout the process have worked closely with the team to understand the business and we have already developed an excellent working relationship which will help us greatly in exploiting the business opportunities.”
James Arrowsmith, Investment Partner at NVM said: “We have been very impressed with the team at Dale, who have done a great job in building a high quality business providing power solutions and services which are critical to a wide range of organisations in the UK and abroad. We are looking forward to working with Denzil, Tim and the rest of the team to take advantage of new market opportunities whilst continuing to build on the core business. There is scope for significant growth over the next few years and we are very excited about the business’s future under NVM’s ownership”.
Reflecting on the completion of NVM’s first investment using funds from NVM Private Equity Vintage III LP, NVM’s Managing Partner, Martin Green added: “I am delighted that we have been able to support management in the buyout of Dale. It is a quality business led by a strong management team who have demonstrated their ability to adapt to changing market conditions and the prospects for the business in the evolving UK power market are exciting”
NOTES TO EDITORS
For further information please contact:
- Natalie Dickinson (NVM: PR & Marketing) – 0118 951 7021 firstname.lastname@example.org
- James Arrowsmith (NVM: Investment Partner) – 0777 892 8280 email@example.com
- Denzil Lee (Dale Power: Chairman) – firstname.lastname@example.org
Download photos of: Dale Power Solutions – www.nvm.co.uk/PRphotos
NVM was provided with:
- Legal advice by commercial law firm, Square One Law (James Bryce and Charlie Fielding)
- Financial due diligence by PwC (Kevin Barnard)
- Commercial due diligence by CIL Management Consultants (Jon Whiteman)
- IT due diligence by Intuitus (Iain Mackay)
- Management due diligence by Continuum (Steve Wycherley)
The vendors were advised by:
- Clearwater International (Phil Burns and Karen Edwards)
- Gateley Plc (Beth Mather and Matthew Flint)
NVM Private Equity is independently owned with over 30 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing more than £350 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities of between £2 million and £12 million in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buyout. www.nvm.co.uk
Dale Power Solutions provides complete lifecycle management of standby power solutions, taking initial concepts through comprehensive and bespoke state-of-the-art design, project management, manufacturing, installation and commissioning, followed by complete maintenance and service which is provided to more than 9,000 generators and UPS around the world. www.dalepowersolutions.co.uk