The latest deal marks the fourth business to join the Lakehouse group since 2011. The merger with Everwarm will see the group significantly expand both its geographical reach and its service offering across energy efficiency and renewables.
Founded in 2011, Everwarm is Scotland’s fastest growing business* and has installed carbon-saving measures in more than 45,000 homes and businesses across the UK.
Employing 250 staff across its offices in Bathgate in West Lothian and Bedford in the east of England, Everwarm’s service offering covers heating, insulation, energy efficiency, renewables and micro-generation.
In the last financial year – only its third year of trading – Everwarm recorded a turnover of £46 million and pre-tax profits of £6 million.
Lakehouse last week announced another year of successful growth with turnover rising 24 per cent from £153.7 million to £190.6 million in 2012/13. Profit before tax increased 48 per cent, rising from £4.8 million to £7.1 million. This strong performance reflects both the group’s organic growth and its strategic acquisition programme, targeting businesses that offer opportunities to expand Lakehouse’s service offering and geographical reach.
Everwarm joins the group through an all share deal, with the merger taking place debt free and maintaining Lakehouse’s low gearing levels.
The latest addition to the group follows three recent acquisitions: K&T Heating Services, a gas servicing, installation and compliance business, in 2011; Allied Protection, a West Sussex-based fire safety and compliance specialist, in 2012; and East-Anglia based Foster Property Maintenance, a contractor and property services company working in the affordable housing and public property sectors, in October 2013.
The merger targets a wide-scale integration of services across the group, with Everwarm significantly boosting Lakehouse’s sustainability capacity in England, and Lakehouse enabling Everwarm to offer a range of construction and asset management services to local authorities, housing providers and other clients in Scotland.
The all share deal will see Everwarm become an integrated part of the Lakehouse group, though the brand will continue to trade under its current name in Scotland. Lakehouse’s total headcount will rise to approximately 1,200.
Stuart Black, executive chairman of Lakehouse, said:
“This merger represents another milestone in Lakehouse’s programme of acquiring successful, complementary businesses that expand our capabilities and reach. With so much debate about the direction of policy in the sustainability sector, we see this deal as a vote of confidence in the green economy and the fact that energy efficiency, fuel poverty and zero carbon homes are going to remain central to any government’s agenda.
“Sustainability is a fundamental plank of our business and we’ll be drawing on Everwarm’s impressive delivery record to expand our retrofit division. There are huge opportunities in London and south east England – a domestic market which is remarkably immature in terms of retrofit and energy efficiency.
“The merger will allow Lakehouse and Everwarm to leverage each other’s strengths and service offerings across the areas we cover. We share a culture of aspiration, entrepreneurship and flexibility in delivery, and this deal opens up new opportunities both for us and our clients.”
Michael McMahon, managing director of Everwarm, said:
“Our deal with Lakehouse is the result of a year-long search for a suitable partner. Rather than a corporate investor, we were looking to join with a business that would allow us to diversify our range of services and help us build on our success to date. We have found a like-minded partner in Lakehouse and joining the group will allow us to offer more to our clients.
“Becoming part of the Lakehouse group gives us scope for long-term growth in England. Working in Scotland, where green funding is significantly more generous, we have rapidly built expertise through delivering funding and installation across more than 45,000 properties in just three years. Now, we look forward to growing our English operation within the Lakehouse group and bringing a wider asset management offer to clients in Scotland.”
*Everwarm was named Scotland’s fastest growing company in the Personal Best Fast 50 2013
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