Elysian Capital II LP Acquires Neil Amstrong’s Company Fastflow Group Limited
Elysian Capital II LP has announced, in conjunction with management and the company’s founder Neil Armstrong, its acquisition and investment in the Fastflow Group Limited (“Fastflow”). This represents the third acquisition in the Elysian Capital II LP Fund which closed in July 2015 at £250 million.
The Fastflow Group is a combination of three businesses that provide maintenance services to the owners of critical assets – water, gas and social housing with combined turnover to March 2017 anticipated to be in excess of £75 million. It was founded in 2005 when Neil Armstrong bought Fastflow Pipeline Services (“FPS”) from Northumbrian Water. The gas transmission business Fastflow Energy Services (“FES”) was in effect a 2012 start-up within the Group. The Social Housing maintenance business (“DWSS”) was acquired in 2014. The three businesses are all individually positioned in attractive niches of large and expanding markets. Neil Armstrong is the leader of the group however each of the businesses has a strong standalone management team, exhibiting real quality, depth and motivation.
The market drivers and customer relationships for each of the businesses provide a positive backdrop for this investment. FPS, the water business, works closely with its primary customer Northumbrian Water through systems, people, processes and long experience. It has recently been appointed a tier 1 contractor with Scottish Water, which will drive growth over the next few years. FES, the gas business, addresses a specialist niche in the maintenance of high pressure gas transmission assets, as well as the high pressure end of distribution. Health & Safety and worker certification are very important to this business, operating as it does on critical assets for National Grid for which there is a well-defined and significant ongoing investment and renewal plan.
DWSS operates in a very specific niche of the large social housing maintenance market – serving London & South East Registered Providers of social and affordable housing, with a high quality service offering based on “right first time” and unrivalled responsiveness to its clients. The market opportunity even within this niche remains very large, and the buy & build proposition, which Elysian is keen to support, is compelling.
Ken Terry, CEO of Elysian Capital said, “Neil Armstrong and his management teams at Fastflow have done a wonderful job in building the Group into a business where service, safety and quality of operation are at the very heart but which has such a variety of compelling growth opportunities in the future. Neil and his management have demonstrated their continued hunger to take on these opportunities and we are very pleased to be able to support them in this.
Neil Armstrong, founder and CEO of The Fastflow Group said, “The Fastflow Group has been very close to my heart for a number of years and in Elysian Capital, I have found a partner that understands what makes this company and its people special. With Elysian’s support, we will continue to realise our ambitious growth targets, whilst maintaining the Fastflow Group as a great place to work for our people and a real value added partner to our customers”.
Elysian Capital was advised by KPMG (financial, tax due diligence); Credo (commercial due diligence); Addleshaw Goddard (legal); Aon (insurance). Neil Armstrong was advised by Cavu Corporate Finance; Deloittes (tax) and DAC Beechcrofts (legal). Senior Debt and Working Capital Facilities provided by Lloyds Bank Commercial Banking and Yorkshire Bank, who were advised by Eversheds Sutherland (legal).
About Fastflow Group Limited
Fastflow is a leading, mid-market asset maintenance company, operating in the UK support services and infrastructure sectors. They have a 600-strong workforce deployed across the UK with offices in Oxford, London, Washington (Tyne & Wear), Scotland, Warrington and Reading.
Source: Elysian Capital press release