HURST advising Thermatic on the takeover trail as it aims to double revenues to 50m

Building services group Thermatic is on the takeover trail to accelerate its expansion as it aims to double revenues to £50m within the next three years.

Our corporate finance team is advising Thermatic as it looks to seal further acquisitions which enhance its technical in-house capabilities or enable it to expand into new sectors.

Alongside selective bolt-on acquisitions, Thermatic is aiming to achieve its £50m goal through continued organic growth.

Its acquisition strategy is focused on its Thermatic Technical FM division, which provides technical facilities management services to clients in sectors including retailing, healthcare, education, hospitality and student accommodation.

The division provides planned and reactive servicing, maintenance and compliance work, focusing on the delivery of hard facilities management in areas such as heating, ventilation and air conditioning, building management systems, electrical, drainage, gas, catering equipment, plumbing and water hygiene.

Thermatic Technical FM acquired PDS Drainage Services this summer, and in 2021 bought VtV Solutions, which provides ventilation and validation services focused on critical environments such as hospitals and operating theatres.

It is the largest division of the Thermatic group of companies, which includes Thermatic Energy Services and Thermatic Homes. The group’s headquarters are at the Sovereign Enterprise Park in Salford Quays. It operates across the UK and Ireland.

Thermatic Technical FM, which is headed by managing director Jack Prady and employs over 170 staff nationwide, accounts for around 80 per cent of overall group revenues, which are on track to top £25m this year. The Thermatic group has 209 employees in total.

Our team working with Thermatic is headed by corporate finance partner Ben Bradley.

He said: “Thermatic has gone from strength to strength in recent years, and is in an excellent position to capitalise on its established customer relationships to expand its service offering by acquiring other specialist technical service providers and integrating them into the group.

“A pipeline of carefully identified targets is being drawn up, with contact expected in the new year.

“It’s an exciting time for the business, and we look forward to supporting Thermatic to achieve its growth objectives over the coming years.”

Paul Douglas-Fleet, Thermatic’s group finance director, said a fragmented market means there are opportunities to acquire businesses with niche capabilities operating in the hard FM space.

He added: “Over the next three years we are looking to double annual revenues, through organic expansion and acquisitions which are a good cultural fit and bring into the business people and services of the right quality.

“Our strategy focuses on targeting companies with turnover of between £2m and £10m which will help Thermatic Technical FM to create a full self-delivery model, adding value for our existing clients, who operate complex building estates across the UK and Ireland.

“We are looking at new disciplines which bolster our technical capabilities or operate in different client sectors. We’re not simply looking to buy sales, we want to buy value as part of our strategy for long-term, sustainable growth.”

Thermatic Technical FM employs more than 140 specialist technical engineers across the country and offers a 24/7 service, 365 days a year. Its workforce also includes contract and account managers, supervisors and technical managers.

Training is carried out at an in-house academy, which is also used to showcase careers to schools and universities.

The attached photograph shows Ben Bradley, right, with Paul Douglas-Fleet.