The sellers of renewable heat generation business have been advised in a multi-million pound investment and acquisition deal.
Renewable Heat Generation (RHG), a Yorkshire company that supplies biomass boilers to care homes across the UK, has been acquired by European equity investment firm Kyotherm.
RHG, headquartered in Harrogate, is one of the UK's largest independent owners of wood pellet fuelled biomass boilers, with more than 100 installations in 53 care homes across England, Scotland and Northern Ireland.
Over the next 20 years the business is expected to provide more than 450 GWh of sustainable heat.
Paris-based Kyotherm is an equity investment company specialising in the development and operation of sustainable heat and energy efficiency. The acquisition of RHG complements the firm's existing portfolio, which represents a total capacity of 70MW producing more 160 GWh/year in renewable energy or energy efficiency both in the UK and across Europe.
The transaction was part-funded through a long-term project finance facility of £5.8m from Clydesdale Bank plus an undisclosed level of equity from Kyotherm. It is the second heat transaction completed between Clydesdale Bank and Kyotherm in the last three months.
Thibault Chevallier, of Kyotherm, said: "The acquisition will strengthen Kyotherm's presence in the UK with a diversified, well-structured and high-quality portfolio of assets. The strong and ambitious government support in the UK towards renewable heat is key in the promotion of such initiatives by attracting competitive capital, thus enabling the production of clean and affordable energy on the long term."
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