Member News
Global manufacturer Viessmann has completed a management buyout of Pacifica Group’s Home Services division in partnership with its existing senior management team, which will result in a multi-million investment in building a renewables-driven home services operation in the UK.
The Germany-based company, which manufactures a full range of climate control products and refrigeration solutions as well as industrial electricity, heating and cooling systems for commercial applications, has acquired Pacifica Home Services (‘PHS’), in conjunction with its management team, from Pacifica Group, Ltd, a portfolio company of leading European growth investor, Synova.
Synova will retain ownership of Pacifica Group together with its management team, which includes its appliances services and UK warranty divisions. Synova will continue to support the development of Pacifica Group, which repairs over 350,000 home appliances every year.
The investment by Viessmann will enable cutting edge, green technology expertise to be further developed by the home services business, as well as expansion into a full range of digital solutions. Kevin Brown will remain as CEO of North East-based Pacifica Group as well as taking the role of non-executive director in the new standalone home services business, whilst Phil Pallister will lead PHS as its Chief Executive Officer.
Viessmann, which has already made 22 international acquisitions in countries including South Africa, Australia and the Netherlands, will benefit from PHS’s well-established UK domestic energy services.
PHS installs and maintains home heating systems and provides insulation services to a cross section of customers including utility companies, housebuilders, housing associations and private customers.
Employing around 240 people, in 2021 PHS will generate revenues of approximately £45m.
The acquisition includes Pacifica’s Oakes Energy Services business, which provides dedicated renewable energy solutions, such as air & ground source heating and solar PV for both domestic and commercial property markets.
All colleagues working for PHS and Oakes Energy Services will remain unaffected and continue as employees of the home services business under the ownership of Viessmann, transferring with the business under the terms of the deal.
This new collaboration will support the UK’s net-zero ambitions and is in line with the UK government’s ban on gas boilers for new build properties from 2025. As the European market leader in the electric heat pump segment, Viessmann is well-equipped to support this strategy, combined with PHS’s UK market expertise.
Recently, the family company introduced the next generation of heat pumps that can be used for not only well-insulated new buildings, but existing renovated buildings due to their high-flow temperature.
Kevin Brown said: “This is a significant investment from a major EU-based company into the UK, highlighting that Britain remains an attractive proposition for international organisations looking to increase their market share.”
It is also a demonstration of Viessmann’s ambition to make a major contribution to achieving a low carbon future as part of a long-term commitment to the UK.
“Its growing focus on renewable technologies, including ground and air source heating and solar energy will be enhanced by the expertise and experience that already exists in PHS along with the extensive after-sales capabilities and established supply chain that will provide a strong foundation for the future.”
Phil Pallister said: “PHS has become one of the UK’s largest providers of home heating, insulation and renewable energy systems and we are looking forward to working with Viessmann to further expand our market position and help it strengthen its green energy solutions activity.”
Timo Tauber, Managing Director Viessmann Investment GmbH, said: “With the acquisition of PHS, we are strengthening our services and sales activities within the UK for the long term. Even more importantly, we are positioning ourselves sustainably in the strongly-growing British heat pump market.”
Advisors to Pacifica Group and PHS were Cavu Corporate Finance, led by Shawn Bone and Thomas Brunsnes, and Deloitte LLP, led by Stephen Hall and Julia Fox. Legal advice was provided by James Nightingale and Imogen Holland from Ward Hadaway and Peter Wood and David Parker from Addleshaw Goddard LLP. Bank funding was provided by HSBC, led by Ben Foster.
