Sovereign completes third acquisition in nine months for portfolio company Kinetics

Sovereign Capital ("Sovereign"), the UK private equity buy & build specialist, today announces the acquisition of Walmotts Limited ("Walmotts") by its portfolio company Kinetics Group ("Kinetics" or "the Group") for an undisclosed sum.  Walmotts is a rapidly growing, Midlands-based, gas, oil and electrical installation and maintenance services provider to the social housing sector.

Walmotts, established in 1983, has long-term contracts with a number of local authorities and housing associations including Wolverhampton Homes, Sandwell Homes, South Kesteven District Council and Festival Housing. It employs over 100 CORGI-registered gas engineers and enjoys a strong reputation for its quality of service. Howie Reynolds of Walmotts will remain with the business as Managing Director, reporting to Chris Cheshire, Group Managing Director of Kinetics.

The addition of Walmotts further enhances Kinetics' strong and fast-growing position in the gas maintenance market and gives it an enlarged national footprint. The Group now incorporates Seaflame, Camerons, TA Horn, Hudson and Walmotts and has annual sales of over £80m.

Walmotts is the sixth facilities management acquisition Sovereign has completed over the last 10 months. This strong deal record results from Sovereign's deep knowledge of the space and reputation as a committed backer and builder of businesses. Sovereign is in advanced negotiations with a number of further possible acquisition targets in this sector.

Simon Hitchcock, Director at Sovereign, said:

"Walmotts is a first-class acquisition for Kinetics, providing a key geographic infill and a bridgehead in the significant and rapidly consolidating Midlands social housing market. In just nine months Kinetics has seen a phenomenal rate of growth, with profits increasing over 300%. This latest acquisition again demonstrates the advantages of our model in creating value for all stakeholders."

Chris Cheshire, Group Managing Director at Kinetics Group Limited, added:

"Kinetics continues to go from strength to strength and importantly has maintained the high quality service which is so fundamental to our clients. Walmotts' excellent geographic fit and strong incumbent management will be of great benefit to the Group as we continue on our strong growth path."