Sovereign Capital in £20 million funding of new Buy & Build

Sovereign Capital, the UK private equity Buy & Build specialist, has committed £20m to Renovo Services Group, a new group established to consolidate the providers of maintenance services to social housing landlords in the South of England and Wales. Renovo will focus on the provision of reactive gas, electrical and building fabric maintenance services.

Sovereign has recruited Phillip Russell, previously Managing Director of Morrison Facilities Services, as Chief Executive of Renovo. Stephen Hallett, previously Main Board Director of Birse Group PLC, Divisional Chairman of Tilbury Douglas, and currently Chairman of Bedford Pilgrims Housing Association, has also joined as Chairman of the Group. Renovo's Buy & Build strategy has commenced with the acquisition of 1^st Saxon-Clenmay, a leading provider of gas and electrical reactive and planned maintenance to social housing landlords on the South Coast, for a total consideration of £14m.

1st Saxon-Clenmay is based in Fareham, Hampshire and provides gas and electrical maintenance services to social housing landlords, including 35 local authorities and housing associations. It currently employs 350 staff and has an active apprenticeship programme including young people from the social housing estates maintained by 1^st Saxon-Clenmay.

Sovereign has committed £20m to support Renovo's Buy & Build strategy and is currently in advanced talks with a number of potential further acquisitions which would expand the geographic reach and range of services provided by the Group. Yorkshire Bank has provided the debt for the acquisition of 1^st Saxon-Clenmay and will provide facilities for future acquisitions.

Philip Russell, Group Managing Director of Renovo Services Group, said: "Sovereign Capital's track record made them the right partner for me to work with to build Renovo into a market leader in the South of England and Wales. I look forward to growing the group organically and working with Sovereign to acquire complementary businesses."

Simon Hitchcock, Director at Sovereign Capital, added: "1^st Saxon-Clenmay has an excellent reputation for service delivery and a long history of working in partnership with its customers. This is a market we know well and 1^st Saxon-Clenmay has the critical mass to make an ideal platform from which to launch Renovo, our latest Buy & Build strategy."