Private equity backs buy-out of Meter Provida Ltd

The management buyout of Meter Provida Ltd, a supply-chain management firm serving the gas metering industry has been backed by private equity investor, Total Capital Partners.

Chesterfield-based Meter Provida Ltd (MPL) has undergone a management-buyout from its parent company Fusion Group Ltd, lead by existing managing director, Tom Houtby and incoming finance director, Stephen Burr.

The business has delivered impressive growth with revenues increasing from £12m to £25m in the three years to March 2013. EBITDA in the year to March 2013 was close to £4.0m.

North East law firm Ward Hadaway advised Total Capital Partners on its backing of the move which is hoped to grow MPL in the next few years as the UK’s 23 million industrial, commercial and domestic gas meters are replaced with smart meters.

Natalie Eastham of Total Capital Partners commented: “We are delighted to back Tim and Stephen as they embark on the next phase of growth for MPL. The industry presents exciting growth opportunities as the impact of deregulation continues and the smart metering opportunity takes shape. MPL has established itself as a key service provider in the market place and we look forward to investing further in its development in the coming period.”

Tim Houtby of Meter Provida Limited said: “Total Capital has provided a bespoke financing package to suit the needs of our business as it grows. I am looking forward to working with them.”

Total Capital arranges financing for each of its investments on a deal-by-deal basis, with funds for this investment coming in the main from two of the UK’s leading institutional investors.

Ward Hadaway’s team was led by corporate finance Partner Katherine Hay-Heddle. Katherine said, “We are delighted to have worked with Natalie and Paul on this investment. Meter Provida has an exciting future ahead of it, and with Tim and Stephen at the helm and the ongoing support of Total Capital, it is sure to deliver on its promise.”

Natalie added, “We chose to use Ward Hadaway having been very impressed with the team when they were working on the other side of a previous investment we made. Their experience in private equity investments of a similar complex nature has been invaluable, and Katherine’s persistence and professionalism has helped ensure the successful completion of this deal.”

MPL provide a full service offering for its customers, including kitting, stock-holding, logistics and full track-and-trace services via its bespoke software system, Slipstream. Its customer base includes the UK’s largest meter asset managers, gas suppliers, network operators and utility infrastructure providers.

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