Member Article

ESG acquires Evolve to create leading energy-services group

Energy management company the Energy Solutions Group (ESG) has acquired the Evolve group of companies which significantly expands the reach and scale of its services.

The deal, agreed for an undisclosed sum with Canadian private equity house Calisto Capital, creates a new £55m turnover business with 400 employees and 10 offices nationwide.

Under the agreement Evolve’s three operations - building energy management systems (BEMS) specialist businesses Nobbs & Jones and Ashdown Controls, and energy services firm Evolve Energy – will now trade as separate brands within the ESG group.

International private equity group Bridgepoint Development Capital created ESG after it backed the management buyout of Building Automation Solutions (BAS) in 2010.

ESG will now offer additional added-value services, including energy procurement, monitoring and remote management from its Glasgow-based ecoCentre which is manned 24-hours by specialist engineers that can quickly identify and pinpoint any faults in customer equipment, often avoiding the cost of an engineer site visit.

The deal also strengthens the breadth and geographic reach of its BEMS offering currently provided by both BAS and Marsh Systems – a firm it acquired in 2011.

ESG has grown rapidly in the past 12 months from a turnover in the year to July 2012 of £36.8m as demand for its services has grown from companies keen to tackle burgeoning utilities costs.

The group is now looking to target £100m in annual revenues within the next three years and is considering further acquisitions to achieve this goal.

The business is also looking to further develop its advisory offering under its ESG brand so that it can provide a full suite of services from board-level energy management strategy, to operationally focused advice and systems implementation.

In addition, ESG can now provide a finance package to its customers – known as ‘ecoEnergy Plus’ – which funds their projects using the long-term energy savings achieved.

Through the acquisition ESG has also significantly expanded its presence within the food retail sector – a key strategic market - adding Aldi and The Co-Operative to a client portfolio which already includes ASDA.

The group is looking to unlock new growth opportunities in universities and the public sector where long-term commitments to energy reduction is driving increased demand for strategic energy management services.

Brin Sheridan, chief operating officer at ESG, said: “This is a transformative acquisition which has significantly enhanced the breadth of our capabilities and our presence in key markets.

“Evolve is a truly progressive business offering cutting edge services to a quality client portfolio, underlined by a strong reputation for delivery.

“Within the UK energy management industry there are few firms who can provide the full spectrum of services – from hardware installation to long-term strategic advice – that we now can.

“The investment we have made in our capabilities over recent years has allowed us to develop a range of proprietary software solutions for energy management, allowing us to engage with any business, no matter what existing systems they are using.

“This creates a compelling offering for business that can now not only have BEMS systems installed but also receive on-going monitoring reports to help them maximise their efficiency and make additional savings, while also receiving strategic consultancy on their long-term energy strategies.

“The added geographical reach means we now have one of the largest branch networks of among UK energy management firms, allowing us to get closer to our customers on the ground and to offer rapid response services nationwide.

“We’re continuing to explore opportunities for further strategic acquisitions which can add depth and scope to our existing services and that complement our values and culture.”

This was posted in Bdaily's Members' News section by The Energy Solutions Group .