DC Group turns up the head in the social housing sector

December 2006

Livingstone has advised Sovereign Capital on the £16 million institutional buy-out (IBO) of DC Group Ltd, incorporating Seaflame and the Donald Cameron group of businesses.

DC Group delivers maintenance services to residential and commercial properties under long-term contracts with local authorities and housing associations. The group has two main divisions: Seaflame, one of the largest gas maintenance contractors in the London market and Cameron Industrial Services, which carries out social housing refurbishment and maintenance in the North West of England.

Established in 1946, the original founder’s daughters recently made the decision to realise their investment in DC Group. Sovereign was able to provide a succession solution which addressed all the vendors’ requirements, and appointed Livingstone to advise them on the buy-out. Sovereign funded the acquisition and has committed a further £10 million of equity to support the company’s buy & build strategy. Debt has been provided by Yorkshire Bank Acquisition Finance. The existing management team remain with the business.

There are approximately five million homes provided by local authorities and housing associations in the UK including 800,000 in London. The cost of refurbishing and maintaining these homes is currently in excess of £10 billion per annum with increasing service provision coming from the private sector.

Livingstone has a great deal of relevant sector experience, having recently completed the acquisition of Superior Plumbing Installations, the £40m Midlands-based independent building services company for the social housing sector.

“In DC Group, Sovereign has acquired an established business operating in two distinct regions and sectors. DC Group represents an attractive platform for Sovereign to develop with their proven buy-and-build strategy” Christopher Jones, Livingstone deal leader.

Patrick Groarke, partner
Tel: 020 7484 4707
Email: pgroarke@livingstonepartners.co.uk

James Lever, partner
Tel: 020 7484 4711
Email: jlever@livingstonepartners.co.uk

Christopher Jones, deal leader
Tel: 020 7484 4724
Email: cjones@livingstonepartners.co.uk