Global energy consultancy, McKinnon & Clarke, headquartered in Fife, Scotland, has been sold to mid-market growth investor Lyceum Capital. Arrowpoint Advisory advised the shareholders on the exit in a relationship that has spanned nearly 15 years.
The independent consultancy, one of the largest purchasers of energy in Europe, advises business users on energy and environmental compliance in regulated and deregulated markets across 21 countries.
M&C's turnover for 2009 was 23m and it employs 373 staff, 87 of whom are based in Scotland. Its management team is forecasting dramatic growth as more businesses turn to the consultancy to manage their energy purchasing and complex environmental responsibilities. An aggressive acquisition strategy in Europe and Australia is also expected to contribute to the company's rapid growth.
Following the deal, founder Sandy McKinnon will retain a minority share in the business and M&C's CEO Simon Northrop, will continue to lead the company. Daniel Adler from Lyceum Capital will join the board.
Simon commented on the sale: “Lyceum Capital brought to the table expertise and funding which will see M&C dominate the energy consultancy market on a global stage. With an ambitious acquisition plan in place, we will be able to offer our clients unrivalled scale and expertise. As environmental legislation rises higher up the business agenda, organisations will need our services to ensure they are operating to maximum efficiency and within the law.”
M&C is one of the few consultancies that offer impartial advice independent of any energy supplier. Its international reach, which delivers 40% of the company's turnover, was also crucial to Lyceum Capital's decision to invest.
Sandy McKinnon added: “I am delighted to see the M&C management team stepping up to take the business to its next level with Lyceum's backing, and am excited to have the opportunity to continue to play a role in its future success abroad. Arrowpoint Advisory provided tremendous support throughout the sale process and managed it in such a way that I have felt close to the detail despite being based in Bangkok.”
Jeremy Furniss, Managing Director at Arrowpoint Advisory concluded: “Despite a lot of interest from strategic acquirers around the world, the shareholders concluded that management was best-placed to continue M&C's global development. The deal was a great outcome for the founding families and reflected the intense interest from trade buyers and private equity alike in successful professional service organisations operating in the Energy, Environmental and Sustainability sectors.”