The three directors of Pontardawe-based Westward Energy Services have completed a management buy-out enabling the former owners to retire after 25 years in a deal that has been part-funded by a £775,000 loan from the Development Bank of Wales.
Jonathan Garland, Stuart Thomas and Dai Atkins have acquired the heating and electrical services business that was first established 40 years ago. It has been operated by Andrew and Joanne Robinson alongside co-founders Anthony and Andrea Slattery since 2001. SME Finance Partners have been supporting the management buy-out and Capital Law advised on legal matters.
Providing domestic, commercial and industrial heating systems, Westward Energy Services employs a team of 100 and has a broad portfolio of clients including private homes, local authorities and housing associations. The company also installs and maintains gas, oil, solid fuel and solar PV systems, along with batteries and electric charging points.
Director Dai Atkins said: “Westward has gone from strength to strength over the last 25 years, delivering high level services to our clients along the South Wales corridor and beyond. We are proud to take the business forward and provide continuity for our clients, suppliers and hard-working team."
“There is a natural fit with the Development Bank as their local team has experience of working in our area and providing funding for management buyouts. Their help, together with assistance from SME Finance Partners, means that we are now in the driving seat and are excited to have the opportunity to build our portfolio of commercial and domestic services while continuing to create jobs and support our local community.”
Senior Investment Executive Scott Hughes and Regional Manager Clare Sullivan of the Development Bank worked on the funding. Clare said: “We can structure finance packages for management buyouts with flexible loans that work for all parties. As a well-established business, Westward is a good example of how we can help fund business succession with the capital needed to allow vendors to realise the reward of their efforts and give the management team the opportunity to capitalise on their knowledge of the business. We wish the team every success.”
Darren Edwards, co -founder of SME Finance Partners said: “It was great to support the management team with their acquisition which now provides continuity for the business and their employees. I’m sure the business will go from strength to strength under their leadership.”
The loan for Westward Energy Services came from the £500 million Wales Flexible Investment Fund. Financed by Welsh Government, the Fund is for deals between £25,000 and £10 million. Loans, mezzanine finance, and equity investments are available for Welsh businesses with terms of up to 15 years.
