Arrowpoint Advisory's Industrial sector team announced that it has advised the shareholders of Hamworthy Heating, one of the UK's leading providers of commercial heating systems, on its sale to Groupe Atlantic, the French heating and ventilation group.
The acquisition gives Groupe Atlantic a good foothold in the UK market via Hamworthy's strong brand and installed base of approximately 90,000 boilers. It will also enable the company to exploit opportunities currently provided by the growing demand for high efficiency condensing boilers.
The business has a strongly branded offering, with an emphasis on premium quality, innovative technology and high levels of service and after sales care. NBGI Private Equity originally backed the management team in an MBO from Powell Duffryn in December 2001 and strengthened the business with the appointment of Nick Templeton-Ward and Andy Moore in 2005.
“Combining Hamworthy's expertise with Groupe Atlantic's will benefit both the market and our customers, and we are delighted to have sold Hamworthy to an organisation with such an established pedigree in the industry,” says Nick Templeton-Ward, Chairman of Hamworthy.
“We look forward to using the goodwill and reputation we have built with the Hamworthy brand to develop new revenue streams for Groupe Atlantic,” adds Andy Moore, Hamworthy's managing director, “We would also like to thank the Arrowpoint Advisory industrial team for steering us through the process.”
“Groupe Atlantic has a great opportunity to move Hamworthy forward,” comments Patrick Groarke, head of the Industrial team at Arrowpoint Advisory. “Changing government regulations require high efficiency or condensing boilers, which are higher value than traditional commercial boilers and often have a shorter replacement cycle. This is good news for commercial heating manufacturers, contractors, maintenance providers and, ultimately, the environment.”
The acquisition of Hamworthy furthers Groupe Atlantic's pan-European strategy and provides greater breadth to their multi-energy offering. Hamworthy management has developed an extremely strong business based around high quality engineering and commitment to service levels.
Hamworthy was another highly successful exit for NBGI Private Equity, delivering a 6x total return on their investment. The deal also represents another example of Arrowpoint Advisory Partners producing excellent results for its private equity clients.