Fusion Corporate Partners are pleased to announce our latest deal, the sale of energy price risk management company Encore International for £6.25 million to McKinnon & Clarke, an energy procurement and compliance specialist headquartered in Edinburgh. McKinnon and Clare are a portfolio company of private equity business, Lyceum Capital. The enlarged business will be re-named M&C Energy Group on the 1st of July.
Fusion Corporate Partners acted as exclusive advisers to the shareholders of Encore International. Paul Kelly (pkelly@fusioncorp.co.uk) led the transaction at Fusion. It is the third energy consultancy sector deal completed by Fusion. Previous deals were;
As previously reported on Fusion DigiNet, Lyceum Capital acquired McKinnon and Clark in January this year for £22 million.
Founded in 2001, London-headquartered Encore is an independent advisor with a major operational base in Budapest and sales offices in the Netherlands and Germany. Its services include developing control policies, tendering and negotiating contracts, budget risk analysis, environmental auditing and reporting and live market transaction support and invoice settlement. Encore handles more than €2.4 billion of procurement annually on behalf of over 150 blue chip customers across 16 European countries.
Encore International’s Managing Director, Mark Dickinson, and European Sales Director, Colin Gebhard, will join the management team of M&C Energy Group.
The acquisition increases McKinnon and Clarkes turnover to more than £30 million and creates significant geographical and cross-selling synergies which will open up new commercial opportunities within the client base.
Dan Adler, Partner at Lyceum Capital, said: “The volatility and complexity of the global energy markets require large corporates to manage risks associated with energy procurement with the same rigour as they do in other areas such as interest rates and foreign exchange.
“With its ability to monitor and alter risk positions on a 24/7 basis, Encore International has unparalleled market coverage and is the only business capable of providing clients with round the
clock access to the latest data and advice.
“Encore will now benefit from the investment we’ve made in M&C’s infrastructure and the deal demonstrates our ongoing commitment to consolidating this highly fragmented market around a robust platform business.”
Simon Northrop, CEO of M&C, said: “Like McKinnon and Clarke, Encore has over the years justifiably earned a place as one of the best respected companies working within the industry.
“Now by combining our complementary skills and experience, I am confident that we can deliver additional benefits to current clients of both companies and of course also to future clients across
the globe.
“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 making sure that, through acquisitions and significant investment in infrastructure, we are well placed to offer our clients unrivalled scale and expertise.”
Paul Kelly, Senior Associate at Fusion, said “We were delighted to work with Mark Dickinson and his team at Encore International. They have built a great business and the fit with McKinnon and Clarke is excellent. The energy services sector is a fragmented market where even the biggest players only have a small market share. Fusion expects to see further consolidation in the market. I expect Fusion to continue to be active in the space over the coming years”.
Location: UK, Edinburgh and London
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