EnServe Sells Inenco Group to Vitruvian Partners

EnServe Group, an energy and utility outsourcing business owned by Cinven, has sold its energy division, Inenco Group, to funds managed by Vitruvian Partners, management and Intermediate Capital Group. UK-based Inenco Group services are provided through three specialised brands Inenco, Inenco Direct and NIFES.

PRESS RELEASE

EnServe Group, the energy and utility outsourcing business owned by Cinven, today announces the sale of its Energy division, Inenco Group, to funds managed by Vitruvian Partners (“Vitruvian”), management and Intermediate Capital Group Plc, subject to customary regulatory approvals.

Inenco Group is the UK market leader in strategic energy management procurement and risk management services with over 9,000 clients including corporate, public sector and SME customers. Its services are provided through three specialised brands Inenco, Inenco Direct and NIFES.

Cinven acquired the parent company EnServe Group (formerly Spice plc) in a public to private transaction in December 2010 for £360 million. Since the acquisition, the energy division has almost doubled its profitability to the year ended April 2013. In 2010 Inenco was awarded Energy Broker of the Year and in 2010 and 2011 was awarded Energy Consultant of the Year. The proceeds of this transaction will be used to reduce bank debt at the parent company level and invest in the remaining divisions.

David Cruddace, Chief Executive of EnServe Group, commented:

“Inenco Group has achieved a market leading position through its ability to provide comprehensive energy procurement, energy management and data processing services in a market which continues to expand as more companies outsource their procurement activities in this specialised field. We are delighted that Vitruvian are acquiring Inenco Group and will be investing in its future growth.

“Following the sale, we intend to invest in and remain focused on driving forward the growth of our Electricity, Water and Analytics divisions.”

Michael Abbott, Chief Executive of Inenco Group, commented:

“We’re really excited to be partnering with Vitruvian, who share our vision to consolidate our leading position in the UK and grow internationally with our fantastic client base. Vitruvian also has significant financial resources to support an acquisition programme to accelerate growth. People are at the heart of our business and Vitruvian really understand this; together we are committed to developing our people, who will ensure that we deliver our ambitious plans.

“Inenco Group’s head office will continue to be based on the Fylde Coast in Lancashire, with NIFES offices in Glasgow, Altrincham and London operating alongside Inenco Direct’s growing presence in Liverpool. Over the course of the next three years, we intend to create new employment opportunities to support the growth in demand for our services, which is fuelled by volatile and rising energy prices and a mass of energy efficiency/carbon legislation.”

Robert W. Baird Limited served as the exclusive financial advisor to EnServe on this transaction.

Ends

For further information please contact:

EnServe Group

FTI Consulting
+44 (0) 20 7831 3113
Edward Bridges
+44 (0) 20 7269 7147

Inenco Group

GDR PR

Richard Baguley

+44 (0) 1253 600800
Vitruvian Partners LLP

College Hill

Paul Downes
+44 (0) 20 7457 2020
Antonia Coad
+44 (0) 20 7457 2023

About Inenco Group

Inenco Group is the UK market leader in strategic energy management, procurement and risk management solutions. The Company manages the procurement of approximately £3.3 billion of energy spend for more than 800 corporate, 8,000 small to medium sized enterprises and 150 public sector clients across 67,000 sites and 106,000 gas and electricity meters. Headquartered in the UK, Inenco Group provides a comprehensive range of sophisticated energy management services uniquely covering both the supply and the demand side.

Inenco Group operates from a platform of five offices with 409 highly skilled professionals. The Company benefits from strong supplier and client relationships, 60+ years of reputation for service excellence and has shown consistently strong organic growth.

About Vitruvian Partners

Vitruvian Partners LLP (“Vitruvian”) is an independent private equity firm which specialises in middle market buyouts, growth buyouts and growth capital investments in the United Kingdom and Northern Europe. Vitruvian focuses on investing in ‘dynamic situations’ in industries characterised by growth and change such as business services, information technology, media, telecoms, financial services, healthcare and leisure. Vitruvian is currently investing its inaugural fund of €925 million.

Nina Witchell | Executive Assistant
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M +44 (0)7891 564 641

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