Business
M&C; Energy Group advised over 3,500 business users on energy usage and environmental impact, providing a comprehensive range of services through an international network of offices that spanned 18 countries in Europe and the Far East.
The business focussed on cost analysis, carbon management, energy procurement, bill auditing, energy price risk management and carbon optimisation — managing in excess of £6.25bn of energy consumption each year for 3,500 of the world’s largest energy users.
Market
This sector has excellent long-term growth prospects as the increasing complexity and volatility of regulated and deregulated global energy markets is driving demand for consultancy services, which ensure efficiencies and compliance across different territories.
Our market mapping exercise for the Energy, Environmental and Cleantech sectors identified McKinnon & Clarke (M&C;) as an attractive and scalable platform investment opportunity in the fragmented and rapidly expanding area of energy analysis, procurement, compliance and management.
Strategy
M&C; was an ideal fit for our proven investment model as it boasted an unparalleled reputation, broad service offering, international reach, established management team and strong, visible revenue streams.
Following the deal in December 2009, we worked with management and implemented a strategy to develop the business into a robust, international market leader capable of dominating the energy consultancy market by:
- Strengthening M&C;’s infrastructure with a rigorous programme of operational enhancement
- Introducing new operational and strategic expertise to the business’s board
- Capturing significant organic growth opportunities within existing services and territories
- Developing new products and expanding its global presence
- Implementing a focussed consolidation programme
Outcomes
During our investment, the business acquired five complementary companies in the UK, Germany, Hungary, the US, and Australia, expanded into major growth markets, and grew its base of large corporate clients significantly from 50 to over 700.
With our support, the business saw a significant uplift in revenues whilst employee numbers 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.
In May 2012 M&C; Energy Group was acquired by trade buyer Schneider Electric, a French-headquartered multinational energy management company.