Phoenix Gas Services

A gas and renewables services provider serving domestic and commercial clients

Phoenix Gas was founded in 1994 and specialises in gas installations, servicing and repairs for domestic and commercial clients.

In recent years, the company has expanded its offering to also include a fully comprehensive renewable energy service which comprises solar PV and thermal, ground and air source heat pumps, battery storage and EV charging points, and electrical services.

Employing over 160 staff, and with a customer base spanning across the Midlands and North of England, Phoenix instructed KBS on a sale that would facilitate further growth under the impetus of new ownership.

“This investment will support the business in its ambitious growth plans and will propel Phoenix forward, as we look towards writing the next three decades of the company’s history.

“Kyle Grocott remains as Managing Director and will be supported by a senior team of familiar faces, ensuring the company retains its family ethos, maintaining continuity for the team, its customers and suppliers.

“With their strategic approach and a track record of successful investing, spanning over 30 years, GIL have supported scores of high-performance businesses across many sectors. Kyle and the senior management team are excited to work with the GIL Investments team.”

Statement from Phoenix Gas Services

Family shareholder exit with management continuity retained

Kyle Grocott, Phoenix’s Managing Director, always envisioned remaining with the business post-sale.

The main objective was to secure an exit for his mother, who was the majority shareholder following the death of Kyle’s father – who had previously run the business before Kyle stepped in – as well as facilitating the sale of the smaller shareholdings of Kyle’s siblings.

“The company name and ethos will remain constant and the changes ahead will strengthen and grow this business towards a successful future for us all.

“I have no doubt the senior management team now in place will take it from strength to strength under the GIL umbrella.”

Kyle Grocott, Managing Director, Phoenix Gas Services

Navigating price pressure to maintain value via revised deal structure

Led by Joe Norris, KBS Associate Corporate Director, a competitive process ensued, with exclusivity entered twice. Issues were encountered the first time due to attempts by the acquirer’s advisers to chip the price and so we advised our client to walk away.

We then ran a second process and Gil Investments quickly emerged as the front-runner, given their existing portfolio of companies.

Initial negotiations were relatively straightforward but protecting the headline valuation during due diligence was challenging, given a drop in trading. The buyer naturally wanted to reduce the transaction value in line with this, and we succeeded in negotiating an alternative structure that was acceptable to all parties while not reducing the transaction value.

“KBS have helped and advised our business throughout the process and listened to the type of buyers we were looking to bring on board. We successfully worked together to deliver on our objectives. Would highly recommend the team and Joe Norris.”

Kyle Grocott, Managing Director, Phoenix Gas Services

Protecting shareholder value while establishing a buy-and-build platform

Despite what was a difficult process at times, we managed to protect our client’s shareholder value. We worked hard to protect the overall value of the transaction despite a drop in trading over the course of the lengthy period of due diligence and legals. We managed to restructure the deal so that the valuation objectives were still met, although over a longer payout period.

Additionally, Gil were delighted to add Phoenix Gas to their portfolio. They subsequently engaged in a buy-and-build strategy with Phoenix as the platform investment and Kyle taking the lead on seeking acquisitions – ensuring a continuation of the productive relationship established with KBS.

“I’m really pleased with the outcome we managed to achieve for our clients. The shareholders who were looking to step away from the company and realise the value of their shares were able to do so, while the rest of the team are able to remain involved with the business.

“I have no doubt they will take it from strength to strength under the GIL umbrella.”

Joe Norris, KBS Associate Corporate Director