Lakehouse, the asset and energy support services group, has acquired Orchard (Holdings) UK Ltd for an initial cash consideration of £7 million. Orchard is a UK energy broker and energy management services provider.
In the financial year ended 31 August 2014, Orchard reported a turnover from continuing activities of £4.99 million and profit before tax of £0.88 million. Orchard had gross assets of £5.9 million as at 31 August 2014.
Under the terms of the acquisition, the consideration comprises an initial amount payable in cash on completion of £7 million and a further deferred consideration of up to £3 million, payable on the basis of Orchard’s financial performance in period up to 30 September 2017.
Orchard provides advice to corporate clients in relation to managing their energy costs, particularly energy procurement and usage. In addition, Orchard provides energy management services to commercial and industrial customers, including brokering supply with utilities firms, managing contracts and advising on energy consumption. Orchard has strong commercial relationships with the leading UK utilities providers. The business employs 78 staff and is based in Elland, West Yorkshire, with offices in Glasgow, Bristol, Newcastle and Northampton.
Orchard was founded in 2004 and, prior to its acquisition by Lakehouse, was principally owned by Gareth and Rachel Henderson. Following completion of the acquisition, Gareth Henderson and the management team will remain with the business. As a result of the transaction, Lakehouse’s total headcount will rise to approximately 1,400.
The acquisition represents a further step in Lakehouse’s growth strategy as the Group continues to expand and develop through targeted, complementary acquisitions which broaden its service offering and geographical reach.
Stuart Black, Executive Chairman of Lakehouse, said:
“Following our successful initial public offering earlier this year, this acquisition further endorses our strategy of acquiring and integrating businesses which expand our service offering and geographical reach. Orchard’s strong client base, excellent relationships with utilities firms and market-leading customer service open up new opportunities for growth in the energy services market.
“Bringing together energy efficiency, water management and smart metering expertise alongside Orchard’s brokering service, the Group’s Energy Services division offers an increasingly broad, national proposition to clients looking to manage their energy usage and meet challenging carbon savings targets.”
UK, Romford. Essex & Elland, West Yorkshire