The transaction, led by Keysource CEO Stephen Whatling, will see Tosca Debt Capital (TDC) founding partner Gary Davison join the board of Keysource, while Warwick Ley of RooGreen Ventures will take the position of non-executive chairman.
Keysource has served as a data centre and critical environment specialist for over 40 years, and provides services dedicated to infrastructure design, building and maintenance.
Additionally, clients of Keysource are provided with energy optimisation studies, designed to help them maximise energy efficiency and reduce their carbon footprint, while saving money.
The firm, which has a turnover of around £16 million, works with brands in education, transport, public sector and financial services, among other sectors.
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“Whilst the general business environment has been very challenging of late, Keysource has continued to demonstrate profitable growth through the excellent work of the team and support of our clients,” said Stephen Whatling, CEO of Keysource.
“With the backing of a strong financial sponsor in TDC, the business plans to develop its buy and build strategy alongside existing organic growth plans and take advantage of the significant opportunities that lie ahead in our sector.
“Our strong and experienced management team are committed to this strategy, and together we are confident that we can deliver strong growth to our shareholders and to support the continued growth aspirations of our business partners.”
Gary Davison, founding partner at TDC, commented: “We have been working closely with Keysource for a number of years, and recognise the enormous potential that Stephen’s vision presents for the future of the business.
“As a result, we’re excited to be able to support the management buyout, and I look forward to playing an active role on the board over the coming months as the business looks to take advantage of growth opportunities.”
Sarah Laverty, director within the Corporate Lending team for the North West at Shawbrook Bank, added: “Keysource is a strong business with plenty of opportunity for growth, both organically and via buy and build.
“We are delighted to have supported Stephen and his team, along with Tosca Debt Capital, in the MBO transaction, and look forward to working together during this next phase of growth.”
Financial terms of the Keysource MBO are currently undisclosed.