Sovereign Capital, a UK mid-market buyout firm with a focus on buy-and-build investments, has bought a third maintenance business and merged it with two of its existing companies, as it looks to create a UK market leader.
Sovereign has bought Hudson Engineering Services, which provides electrical and building maintenance services within the social housing sector. It will combine Hudson with two businesses it bought at the end of last year – Seaflame, a gas maintenance contractor, and Cameron’s, a refurbishment specialist.
The combined group, to be called Kinetics, will have sales of more than £50 million per year. It will target the burgeoning public sector housing market, as the UK government looks to improve the standard of social housing under its Decent Homes initiative and increases spending on accommodating the armed forces.
Kinetics’ management team will be drawn from all three businesses. Hudson managing director Chris Cheshire becomes managing director of the group, while Neil Williams becomes commercial director and Paul Teese takes the role of finance director.
Sovereign has also moved to bolster the management team by bringing in industry veteran John Pettifor as chairman.