Inform Magazine

ELECTRICAL SECTOR SPARKING SIGNIFICANT 2023 M&A DEMAND

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xcuse the puns, but we couldn’t resist…companies connected to the electrical industry have powered a sizeable portion of KBS Corporate’s recent M&A activity.

West Sussex-based Select Electrical Supplies Ltd, meanwhile, is a wholesale distributor of lighting, heating, ventilation and fire safety products. Steve Alcock, KBS Corporate Deal Executive, advised on the company’s sale to Electrical Wholesale Systems Ltd (Regent), who have a strong regional reputation in Kent and were looking to expand geographically to enhance their market presence. “The Select Electrical acquisition improves Regent’s portfolio, providing the group with another depot and a larger customer reach,” said Steve. Moving to a slightly different area of the industry, T4 Mechanical and Electrical Ltd was sold to a Swiss group seeking to expand its UK presence. Based in Surrey, T4 is among three companies under the same umbrella that were acquired by Sauter Automation, the others being Lidex Control Systems Ltd and React 4 Group Ltd. T4 offers mechanical and electrical services, also incorporating design and maintenance, to the buildings services sector across London and the south of England. Lidex develops and installs energy management systems and controls, while React 4 delivers fire security systems. Sauter Automation, a Basel-based buildings technology group with subsidiaries across Europe, was the buyer via its UK subsidiary. Joe Norris, KBS Corporate Associate Director who oversaw the transaction, explained: “The company wasn’t on the market very long before Sauter made an offer for the three companies.

Whether it’s system design, manufacturing, installation or maintenance, electrical companies continue to be in strong demand from acquirers, with high multiples being achieved. A perfect example was Blackpool-based AC Electrical Services Group Ltd (ACE), which was sold to Storskogen, a Swedish-based international group of businesses across trade, industry and services who were making their second acquisition through KBS. Among the leading electrical contractors in the UK, ACE provides a comprehensive range of services for commercial, industrial and private clients. Operating nationally, and predominantly in the retail, supermarket, local government and hospitality sectors, electric car charging installations is one of ACE’s specialist areas. They also test and inspect fire alarms, emergency lighting, CCTV and security systems. “ACE is an excellent business and has an enviable reputation within the marketplace,” said Jay Singh, KBS Corporate Finance Director who presided over the deal. “During our process, we generated a lot of interest in the group and met with several potential acquirers, but Storskogen were the best strategic fit and shared the long-term vision of the business.”

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