Lyceum Capital-backed M&C; Energy Group (“M&C;”), a leading global energy consultancy firm, is set to be sold to trade buyer Schneider Electric, a French-headquartered multinational energy management company.

Contracts have been exchanged and the deal, which is subject to customary regulatory approvals, is expected to complete in Q2 2012.

M&C; was acquired by Lyceum Capital in December 2009 and, under the growth investor’s ownership, has acquired five complementary businesses in the UK, Germany, Hungary, the US, and Australia, expanded into major growth markets, and significantly grown its base of large corporate clients from 50 to over 700.

Dunfermline-headquartered M&C; has operations in 15 countries and is a leading player in providing technology-based energy procurement and compliance services, managing +12 billion of energy spend for its clients.

Under Lyceum’s ownership, the business has seen significant uplift in revenues whilst employee numbers have increased from 367 to 500.

Similarly, following a business transformation programme, the company improved its energy management software and products, invested in its global IT infrastructure and implemented a series of operational enhancements, particularly in the areas of business unit segmentation and scalable business development focus.

Dan Adler, Partner at Lyceum who led its investment in M&C;, said: “This deal is the result of a successful collaboration with an experienced and highly ambitious management team to introduce key operational enhancements and implement a rapid consolidation programme. This has transformed M&C; from a family-owned business into the largest outsourced energy management business in Europe and a hugely attractive strategic asset.

“We are proud to have helped to build a robust, well-invested and rapidly scalable group which will present sustainable long-term growth opportunities for Schneider Electric, and we wish management, staff and their new owner all the best.”

Schneider Electric will combine the operations of M&C; with those of Summit Energy, a North American-headquartered energy procurement and advisory business. The enlarged company will be a major player in the global management of procurement and sustainability services to industrial, commercial and public sector enterprises.

Mark Dickinson, CEO, M&C; Energy Group commented: “During the last three years, Lyceum Capital has been the ideal growth partner, providing strategic input and organic and acquisitive growth, which have contributed significantly to us becoming the largest provider of outsourced energy management. In the next chapter of our growth strategy, we aim to capitalise on our position further, creating a global force in the energy advisory sector, providing long-term benefits to both staff and clients as a result of our, and Schneider and Summit’s, combined knowledge, expertise, geographic footprint and range of products and services.”

Chris Curtis, Schneider Electric’s Executive Vice President, Buildings Business, commented: “M&C; is a bolt-on acquisition that will strongly complement Summit’s offerings, significantly enhance the Group’s position in energy management services, and accelerate our growth in countries where our presence is limited. In addition, this acquisition is totally in line with the Group’s strategy to boost services growth. The combination will allow us to connect their supply side expertise with our lead in demand side solutions and generate significant synergies.”

M&C; Energy brings the number of deals completed by Lyceum Capital over the past year to 17, comprising 12 add-on acquisitions for portfolio companies and four new platform investments including Access, a provider of business management and accounting software, branded food services provider EAT, IT services firm Adapt and security software specialist Clearswift.

Lyceum Capital’s strong track record of driving consolidation in its chosen markets is evidenced by the firm’s 69 targeted add-on acquisitions to date on behalf of the 18 businesses it has backed.

Robert W. Baird Limited served as the exclusive financial advisor to M&C; Group on this transaction.