Cavu Corporate Finance (Newcastle) brokered the deal, unlocking the door to additional funds for Fastflow, which has already experienced major growth over the past five years. Lloyds Bank Commercial Banking and Yorkshire Bank provided senior debt facilities to support the transaction. With its headquarters in Washington, the Fastflow Group provides maintenance services to the owners of critical assets in the water, gas and social housing sectors.ShawnandNeil


This year, combined turnover (to March 2017) is anticipated to top £75 million. It was founded in 2005 when Neil Armstrong bought Fastflow Pipeline Services (FPS) from Northumbrian Water and now has two further divisions. The gas transmission business, Fastflow Energy Services (FES) was, in effect, a 2012 start-up within the group, while the social housing maintenance business (DWSS) was acquired in 2014.


Whilst Neil Armstrong heads up the group, each of the divisions has a strong standalone management team and all are positioned in attractive niches of large and expanding markets. The market drivers and customer relationships for each provide a positive backdrop for this investment. FPS works closely with its primary customer Northumbrian Water and has recently been appointed a tier one contractor with Scottish Water, which will
drive growth over the next few years.

 

FES maintains high pressure gas transmission assets, as well as the high pressure end of distribution on critical assets for customers such as National Grid, for which there is a well-defined and significant investment and renewal plan. 


DWSS operates in a very specific sector of the housing maintenance market – serving registered providers of social and affordable housing in London and South East England. Its high quality service is based on a ‘right first time’ philosophy and unrivalled responsiveness to clients. Market opportunity here is also very large-making the buy and build proposition, which Elysian is keen to support, compelling. All divisions benefit from long term framework agreements and Fastflow has an excellent renewal track record, based around its commitment to quality service provision.

 

Neil Armstrong, founder and CEO of The Fastflow Group said, “This business has been very close to my heart for almost 22 years and in Elysian Capital, I have found a partner that understands what makes this company and its people special. With its 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.”

Shawn Bone Managing Director of Cavu Corporate Finance, added: " We have enjoyed working with Neil and his team to help them set a new strategic direction for the business. It was clear from an early stage that the Elysian Capital team understood that Neil was looking for a partner who shared a common ambition for the business. We look forward to working with Fastflow on the next part of the journey."

 

KenandNeil
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 its very heart, creating 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.


Additional information and quotes from advisors: 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, which were advised by Eversheds Sutherland (legal). 

 

Jamie Fraser, Relationship Director, Mid Markets at Lloyds Bank Commercial Banking, said: “Our relationship with Fastflow Group spans over a decade. To be part of the business’ next phase of strategic growth, with added support from our Strategic Debt Finance team, is very exciting for Lloyds Bank. “The management team has already built a first-class business, and Fastflow will continue to grow by being a trusted business partner to its customers nationwide. We’re continuing to help Britain prosper through supporting businesses like Fastflow Group as it goes from strength to strength.”

Mike Selina, Yorkshire Bank Senior Director commented: "Fastflow Group is clearly a market leader with a high quality management team and proven track record. We feel privileged to play a part in their story and are looking forward to supporting the management team in their next stage of growth.”


Paul Ellaby, who led the team for DAC Beachcroft, said: "We are delighted to have been involved in such a significant transaction for the north of England. It has been extremely satisfying to have worked closely with the group over a 12 year period and to see it grow and prosper. I've no doubt this winning combination of the Fastflow and Elysian teams can look forward to a bright and exciting future."

Fastflowatwork

Notes to editors:
Fastflow Pipeline Services - based in Washington, Tyne and Wear looks after water networks for Anglian, Northumbrian and Scottish Water, supplying almost three million customers. Every day, excellent water management is achieved through the use of trenchless technology, a fully computerised work management system and an award winning trunk mains cleaning process.


Fastflow Energy Services - based in Warrington, Cheshire provides a wide range of specialist gas pipeline and above ground installation projects to clients including National Grid, Northern Gas Networks and Wales and West Utilities. Using innovative, end to end solutions, welded steel pipelines and associated plant it provides lines operating at up to 100 bar.


DW Support Services - which has offices in Thame, London, Isle of Wight and Reading provides property maintenance, repair and refurbishment services for housing associations, London councils, government agencies, management companies, schools, universities and NHS trusts. Around 200,000 homes are maintained through the speedy completion of over 30,000 repairs a year.

To find out more visit www.fastflow.co.uk or www.dwsupportservices.co.uk


Cavu Corporate Finance is a mid-market corporate advisory boutique focusing on disposals, acquisitions, debt and equity finance raising, as well as providing strategic advice to retained clients. It also supports smaller high growth businesses that have great potential to access the early stage equity markets.

Cavu was established by Shawn Bone, one of the North East’s leading dealmakers with more than 20 years’ experience of providing advice to shareholders and companies. As an independent advisory boutique, it has a strong focus on providing strategic corporate finance advice to private companies, shareholders, management teams and private equity investors. To find out more visit www.cavucf.com


Elysian Capital is an independent private equity fund specialising in the UK lower midmarket. The management team combines entrepreneurial and business operational competence with an experienced private equity and leveraged debt capability, providing the full range of skills needed to make and develop successful investments in Elysian Capital’s target markets. To find out more visit www.elysiancapital.com