UK private equity firm Lyceum Capital has sold SPI Group to energy company npower for an undisclosed sum.
SPI provides mechanical and electrical installation and repair and maintenance services primarily to the social housing and public sector markets throughout England and Wales. Customers include local housing authorities and housing associations, such as Birmingham City Council’s and Whitefriars Housing Group.
The company was acquired from the founding owners by Lyceum in 2007, and has expanded from its West Midlands home to serve some 80,000 homes and almost double its order book.
Partner at Lyceum, Dan Adler, said: “The market for installations, repairs and maintenance in the UK social housing sector is estimated at over £13bn. This is an exciting growth sector, which we are enthusiastic about. SPI is a really high quality business – and quality of services and management is what success in this sector is about; it’s not a given.”
Chief executive of SPI, Steve Huxley said: “This is a very exciting development for SPI. Over the last twelve months SPI has had a number of parties expressing interest in the businesses and these were reviewed on their merits. The npower proposition was compelling as it enabled SPI to join a large energy services group, committed to our further growth.”
SPI is the fourth exit in just over 18 months from Lyceum Capital’s first fund. Lyceum closed its second fund in 2008, raising £255m.