James Cowper Kreston advises YFM on Management Buyout Of Essex-Based Specialist Property Services Compliance Business

James Cowper Kreston has acted as buy side adviser to YFM Equity Partners on the primary buyout of RGE Services, a fire and electrical compliance services provider primarily working with the public sector. This is the second deal from the PE house’s £80m Buyout Fund II which closed just 12 months ago.

With its headquarters in Chigwell, Essex, RGE Services was founded in 1985, and has grown to over £8m turnover with an 80-plus team. With over 30 years’ experience in property services, repairs and installation, it mainly serves customers in the public sector including local authorities and housing associations, primarily working across London and the South East. The UKAS-accredited company provides a range of services covering electrical maintenance and testing and fitting of equipment such as fire alarms, dry and wet risers, fire extinguishers, door entry systems, emergency lighting and CCTV.

The buyout was led by Scott Craig, managing director, who has worked alongside founder Roger Greene for the last 15 years. Scott will be supported by incoming chair, Stuart Black, and Matt Aspinall who joins as finance director. Roger Greene will remain a shareholder and investor in the business, continuing in his current strategic support role.

Stuart Williams and Richard Thomas of James Cowper Kreston Corporate Finance led the team from James Cowper Kreston. Phil Snell also provided tax structuring services on the MBO.

Stuart Williams commented: “We are very pleased to have advised YFM on the transaction. The feedback from customers during the process was first rate and given that service is at the heart of what RGE does then I believe the business is well placed to capitalise on the growth already achieved by Scott and his team in the coming years.

David Wrench, Investment Director at YFM said: ““RGE Services is a great commercial business which has continued to meet the growing demands for compliance as part of the drive for greater regulation within property services. With its strong track record in the public sector as a high quality provider, it is well placed to continue to benefit from the positive market environment, led by Scott and the experienced team he has brought together. It was great to work with the team at JCK, who were an enormous help during the process, working alongside the deal team and providing solutions-orientated advice every step of the way. We look forward to working with them again in the future”

Other advisers on the deal included Birketts (Adam Jones and Thomas Utting, legal work); Graph Strategy (James Tetherton, commercial due dilgence); Crowe (Bob Alsop, financial due diligence); Stratton HR (Anna Cornwallis, organisational and people due diligence); and Delta Simons (Alexandra Houndsworth, health & safety due diligence). The vendor was supported by Transworld Business Advisors UK: Mergers and Acquisitions (sell-side adviser); with legal advice provided by Pepperells Solicitors and Keystone Law.