Two engineering companies from the North West are among three businesses acquired by Tendra Technical Services, a newly established platform for consolidating the UK technical services market across the built environment backed by the Triton Smaller Mid-Cap Fund II.
Fletchers Engineering, based in Eccles, and Preston-headquartered James Mercer Group have both become part of Tendra Technical Services, alongside Coat Facilities Group which is based in the West Midlands. The acquisitions mark the fund’s first platform investment in the UK.
The platform is designed to bring together businesses with technical knowledge, strong client relationships and a commitment to quality and safety to provide growth opportunities through shared expertise and best practice. The group will integrate operations such as business development, as well as pursuing further strategic acquisitions.
Fletchers Engineering is a Heating, Ventilation and Air Conditioning (“HVAC”) technical services company with a specialist maintenance department. The company was formed over 40 years ago and employs around 140 staff.
James Mercer Group is a based in Preston, Lancashire. It operates across sectors including defence, healthcare and education with around 190 employees.
Andi Klein, Managing Partner, Head of Triton Smaller Mid-Cap, said: “We are excited to announce Tendra as our first Triton Smaller Mid-Cap investment in the UK. This marks an important milestone for Triton and reflects our commitment to building high-quality platforms in fragmented markets.”
MHA, the UK member firm of Baker Tilly International, advised the two North West businesses on their sales.
The firm provided corporate finance lead advisory and tax advisory services to the shareholders of Fletchers Engineering. The lead advisory team was led by Andrew Feeke and Robbie Taberner, supported by Daisy Stott. In addition, MHA provided tax advisory services to the shareholders of James Mercer Group.
Robbie Taberner, Corporate Finance Manager, MHA, said: “This transaction brings together companies with aligned expertise and skills to benefit from the external investment which will fuel a new phase of growth.
“Through the knowledge and experience of our teams, we have provided a range of advice to two of the three companies which have become part of Tendra across corporate finance and tax, ensuring all businesses were aligned with the buyer throughout the acquisition process.
“We’re looking forward to seeing both Fletchers and James Mercer flourish as part of the new Tendra Technical Services Group.”
Browne Jacobson provided legal advice to Fletchers Engineering (Ryan Brown, Alex O’Donoughue, Benedetta Cocconi and Anne Gascoigne) and James Mercer Group (Peter Allen and Alex O’Donoughue).
Ryan Brown, Partner, Browne Jacobson said: “There is a lot of interest in the HVAC sector from domestic and overseas trade and private equity investors. To have sold two businesses to the same group, along with another three similar transactions we have advised on over the last four months, shows that we are at the sharp end of M&A activity in the space.
“We work very well with the team at MHA and the Fletchers transaction was another example of that.”
The LCap Group, led by Paul Waite, provided management advice for Fletchers Engineering.
The formation of Tendra Technical Services marks the 11th platform investment made by the Triton Smaller Mid-Cap Fund II. The fund applies Triton’s investment strategy to lower mid-market companies in business services, industrial tech and healthcare. It uses Triton’s in-house operational capabilities and resources to help management teams build market-leading lower mid-market firms.
Greg Davies, Group CEO of Tendra Technical Services, said; “Triton is the perfect partner for Tendra as we embark on building a strong and integrated platform. Triton’s experience with family-owned companies and its sector knowledge will be invaluable as we accelerate growth together. We look forward to collaborating with Triton in the years ahead.”
