Acquisition (With Management) of Tekmar Energy Limited
Elysian Capital I LP, the independent private equity fund specialising in the UK lower mid-market (Notes), has acquired, following a management buy-out, Durham-based Tekmar Energy Ltd, the market leading designer and manufacturer of cable protection systems, primarily for the offshore wind sector. (www.tekmar.co.uk/energy) Ken Terry, CEO of Elysian Capital, said: “Tekmar Energy is a young British company at the forefront of a new industry critical to the future energy needs of the United Kingdom and a sector that is strongly supported by Europe-wide government environmental policy and incentives.
“We are excited by the world-wide potential for offshore wind farms. Elysian will be helping Tekmar’s management team to continue to support its customers in this fast-growing and dynamic market. I believe that the key to our securing the deal, aside from our proven strengths in supporting growth companies, was our knowledge and past experience in the wind power industry.”
James Ritchie, CEO of Tekmar Energy Ltd, said: "We are excited to be backed by Elysian Capital who, in so efficiently completing the MBO, have given us great confidence that, together, we will be able to harness this market’s growth potential. The industry has faced a challenge in dealing with subsea cable failure during operation and installation, an area we focused on to provide turnkey solutions in combating the issue. Key to our success was our dynamic ability to work with our customers and provide cost effective solutions that work and are reliable in a fast growing but often demanding and hostile sub-sea environment. This is a vision we share with our new investors."
Every offshore wind turbine requires sub-sea cabling and, therefore, cable protection systems. Tekmar’s patented systems are becoming the industry standard solution to protect cables from damage.
The European renewable energy market is expected to grow aggressively over the next 20 years, with offshore wind dominating this expansion. Still in its relative infancy, installed European offshore wind capacity is forecast to reach 150GW by 2030 – a 50 fold increase on the current 2.9GW capacity.
Elysian Capital was advised by PricewaterhouseCoopers (Leeds and Manchester) for financial and tax due diligence; MAKE Consulting (commercial); Addleshaw Goddard (Legal); Willis Limited (Insurance) and The Quinn Partnership (management). The Vendor was advised by PricewaterhouseCoopers (Newcastle) and Dickinson Dees (Legal). Management were advised by Dickinson Dees. Working Capital and Bonding Facilities were provided by Barclays Corporate, who were advised by Ward Hadaway (Legal).