Private equity firm makes £214m bid for Sureserve

A London-based private equity firm has bid £214m for housing maintenance firm Sureserve.

Cap10 Partners LLP’s bid has been recommended for acceptance by the board of Sureserve, which is currently listed on the London Stock Exchange.

Under the terms of the deal, Sureserve’s shareholders will receive 125p per share – nearly a 40 per cent more than Sureserve’s share price of 90p on 20 April, before the takeover bid was announced.

Sureserve specialises in inspection, compliance and installation of maintenance services in the heating, insulation and renewable energy sectors.

In its latest annual accounts, for the year to 30 September 2022, Sureserve reported a pre-tax profit of £15.6m, up from £11.1m the year before. Its revenue was also up slightly, coming in at £275m compared with £217m.

The offer will be put to Sureserve shareholders in June.

Cap10 said in a statement: “Cap10 believes that, under private ownership, with the ability to focus on long-term strategic goals and the right access to capital, Sureserve will be able to accelerate its growth significantly both organically and through M&A.”

Sureserve chair Nick Winks said: “The Sureserve board has great confidence in Sureserve’s ongoing strategy, which it expects to deliver long-term sustainable operational and financial performance through both organic growth and strategic acquisitions.

Under private ownership, and without the costs and regulations of a listed company, Sureserve should be able to “pursue its strategy more productively”, he added.

Cap10 co-managing partners Fabrice Nottin and Serge Touati said: “Sureserve is well-positioned to bring a full suite of products and services to its customer base to support them in all aspects of their energy transition journey.

“We are fully supportive of Sureserve’s intention to become the strategic partner to social housing landlords, local authorities and other public sector bodies to help them achieve their goals to (i) reduce fuel poverty across, and the carbon footprints of, their estates, and (ii) enhance the quality of living of their tenants.”

Sureserve was called Lakehouse until September 2018, after it successfully sold off its construction arm for around £500,000.