An independent building automation specialist firm working with the largest data centre developers and contractors across the world has been acquired in a private equity-backed deal.
ABEC, one of Europe’s leading firms in its sector, was established in 2004 and has grown rapidly over the past decade. It will achieve a turnover of more than £43m for its 2024/25 financial year.
The firm, headquartered in Tewkesbury, has been taken over by private equity firm Magnesium Capital supported by credit fund DunPort Capital Management.
Bristol-based corporate finance advisors Shaw & Co led the deal on behalf of ABEC’s shareholders.
Following the transaction – financial details of which have not been disclosed – ABEC will now partner with Magnesium Capital, one of Europe’s leading energy transition investors, to establish itself as a truly global player.
ABEC’s founder & CEO Matt Morrall will continue to lead the business alongside chief operating officer Matt Litten and both have invested alongside Magnesium Capital as part of the transaction.
ABEC, which employs 150 people in 11 countries across the globe, also has a substantial portfolio of BMS (building management system) maintenance clients comprising a range of commercial buildings and major data centres.
The company’s BMS maintenance offering has grown significantly in recent years as the systems are increasingly important in helping companies meet their ESG (environmental, social and governance) targets.
A BMS can manage somewhere between 60% and 80% of all power consumption in any given building, affording companies the opportunity to save power and reduce energy consumption.
Magnesium has been supported in the deal by DunPort Capital Management, a leading European asset management company that provides flexible debt capital to Irish, UK and Western European-based businesses for growth, acquisition or refinancing purposes through its direct lending funds.
Magnesium Capital advises on investments in fast-growing technology and tech-led businesses that are enabling the shift to a decentralised, decarbonised and digitised energy system.
ABEC’s position as a leading BEMS, EPMS and BMS solutions provider fits perfectly with its investment thesis.
Matt Morrall, chief executive officer & founder, ABEC, said: “I am very proud of the growth ABEC has achieved over the last decade and particularly more recently over the last three years. This is credit to the wonderful team we continue to build.
“Our vision has always involved expanding geographically and we are very confident we can achieve this by staying true to our core values.
“Working with a partner like Magnesium is key to helping us achieve our strategy. We’re very excited about working together over the next few years.”
Daniel Wild, partner, Magnesium Capital, added: “Data centre energy consumption has increased rapidly in recent years, ensuring this consumption is managed efficiently is critical for all stakeholders, and in delivering the energy transition.
“ABEC is equipping its customers with the tools and support to manage their assets effectively over their entire lifecycle.”
Jim Shaw, founder & CEO, Shaw & Co, said ABEC had created itself a leading position in BMS and particularly systems into data centres.
“It was absolutely the right time to seek a partner that could support the team to capture this growth,” he added.
“We set out with an ambitious deal objective for great long-term clients and I am delighted to say that we have achieved this.”
Also advising on the deal were:
- TLT: Legal advice (ABEC).
- Grant Thornton: Financial and tax due diligence (ABEC).
- Claritas Tax: Tax advice (ABEC).
- Walker Morris: Legal advice (Magnesium Capital).
- KPMG: Financial and tax due diligence (Magnesium Capital).
- EY Parthenon: Commercial due diligence (Magnesium Capital).
- Addleshaw Goddard: Legal advice (DunPort Capital Management).
Shaw & Co is a leading corporate finance advisory firm that helps business leaders and SME owners across to buy, sell, or fund the growth of a business. Founded by Jim Shaw in 2011, the company has offices in Bristol, Birmingham, Glasgow, London and Manchester.
Shaw & Co specialises in a range of services from exit strategies, business valuations, acquisitions and sales, to mergers, management buy-outs and the securing of finance for growth. It works across a range of sectors including automotive, transport & logistics; energy & natural resources; financial services; food & beverage; healthcare & life sciences; industrials & chemicals; leisure, tourism & sport; professional services; property & construction; technology, media & communications; and wholesale & retail trade.
The company has led many notable deals with renowned international companies including the sales of GoProposal to Sage, The Safeguarding Company to Tes (Times Educational Supplement), Senta to IRIS, Pukka Herbs to Unilever, Canopy Simulations to Michelin, and Vouchercloud to Groupon.
It has also helped many businesses fund their growth ambitions, such as CatSci, which received significant equity investment from Paris-based Keensight Capital, and EnSilica, which used debt funding to help create a platform for an IPO.
