Connection Capital, the private client alternative investment business, has backed a management buyout at Winder Power, a £35m revenue provider to the UK electricity distribution sector.
Leeds-based Winder Power designs, manufactures, installs and manages electricity distribution transformers for the UK electricity grid and infrastructure customers. Transformers are used to ‘step up’ or ‘step down’ voltages and are used e.g. to connect electricity generated by Wind and Solar farms (low voltage production) to the National Grid (high voltage transmission) and back down for domestic and commercial use (low voltage).
The company, which employs 120 staff in West Yorkshire, traces its roots back over 100 years. It is now set to benefit from significant investment in the UK’s electricity infrastructure supporting an increased demand for clean energy electricity, self-sufficiency of energy supplies, and for the UK to reach net zero faster.
According to the UK National Grid, and based on McKinsey research, electricity consumption in the UK will increase c.50% by 2036 and more than double by 2050. As part of ‘The Great Grid Upgrade’ The National Grid and distribution networks will require the largest investment in generations to support UK electricity infrastructure needs (source: The National Grid).
The transaction is the 20th management buyout that Connection Capital has completed since inception in 2010. It has now invested over £233m in UK companies, £110m of which is through MBOs.
Bernard Dale, Managing Partner and Co-Founder of Connection Capital said:
“This is a milestone MBO investment for Connection Capital and we are delighted that Winder Power chose us as a private equity partner for its next stage of growth. We are always searching for UK SMEs with dynamic, experienced management teams to invest in and support. Winder is a great example. Its staff have unique skills and there are really positive market dynamics for future growth.”
CEO Paul Matthews said:
“Connection Capital’s funding opens a new chapter for the business at an incredibly exciting time for our industry. The progress we have made to establish the Winder Power brand as the leader in the sector has really paid off. We are now well positioned to enjoy another decade of growth, with infrastructure investment increasing across most of our sectors and markets in the UK at a time when we have an unrivalled reputation and capacity.”
About Connection Capital
Connection Capital provides private professional investors with access to direct private equity transactions and alternative investment funds that are usually only available to institutional investors.
It has raised over £500 million of funds (as at 31 January 2024), from its clients, which has been invested across a diverse portfolio including Virgin Wines, Tempcover, and 23.5 Degrees, the UK’s first Starbuck’s franchise, as well as private fund strategies operated by institutional grade private managers such as CVC, 17Capital, InvestIndustrial and ICG.
Investment opportunities are identified and negotiated by Connection Capital, which also carries out all due diligence and manages the investment from completion through to exit, on its clients’ behalf. Connection Capital is authorised and regulated by the Financial Conduct Authority.
Advisers:
- Connection Capital deal team: Bernard Dale and Hannah Willison
- Advisers to Management: Chris Silverwood of CorpFin
- Legal advisers to Connection Capital : Victoria Elliot, Sophie Cahalin and Claire Stretton of Gateley Legal
- Legal advisers to Management: Richard Moran Hitesh Tailor of Clarion Solicitors
- Commercial due diligence: Christina Slater, Chetan Chhatwal, Elliot Johnstone, Poorav Chheda of Baringa Partners LLP
- Financial due diligence: Paul Read, Francis Drysdale and Corin Briault-Hutter of HMT LLP
- Insurance due diligence: Thomas Beckett and Giles Murphy of Wills Towers Watson Plc
Press enquiries:
Claire Madden
Managing Partner
Connection Capital
020 3696 4010 or 07764 241476
Russell O’Connor
Headlines for Business 07760 282586