Tosca Debt Capital backs Keysource MBO


Keysource, a specialist in data centres and critical environments, has successfully completed a management buyout (MBO), led by Stephen Whatling. The transaction was backed by Tosca Debt Capital (TDC) and Shawbrook Bank, who provided equity finance and debt funding respectively. Terms of the deal are undisclosed.

Based in Gatwick, Keysource has been a specialist in data centres and critical environments for more than 40 years, with its team of over 60 providing a range of services to design, build and maintain critical and technology infrastructures and protect reputations. The firm, which has turnover of c.£16m, works closely with major international brands across a range of sectors, including education, transport, public sector and financial services.

Keysource also provides clients with an energy optimisation studies, designed to help companies maximise the energy efficiency of their data centres, save money and reduce their carbon footprints.

As part of the transaction, Tosca Debt Capital founding partner Gary Davison will join the board of Keysource, while Warwick Ley of RooGreen Ventures will take the position of non-executive chairman.

Stephen Whatling, CEO at Keysource, said: “Whilst the general business environment has been very challenging of late, Keysource has continued to demonstrate profitable growth through the excellent work of the team and support of our clients. With the backing of a strong financial sponsor in TDC, the business plans to develop its buy and build strategy alongside existing organic growth plans and take advantage of the significant opportunities that lie ahead in our sector.

“Our strong and experienced management team are committed to this strategy and together we are confident that we can deliver strong growth to our shareholders and to support the continued growth aspirations of our business partners.”

Gary Davison, founding partner at Tosca Debt Capital, said: “We have been working closely with Keysource for a number of years, and recognise the enormous potential that Stephen’s vision presents for the future of the business. As a result, we’re excited to be able to support the management buyout, and I look forward to playing an active role on the board over the coming months as the business looks to take advantage of growth opportunities.”

Sarah Laverty, Director in Shawbrook’s Corporate Lending team for the North West, said: “Keysource is a strong business with plenty of opportunity for growth, both organically and via buy and build. We are delighted to have supported Stephen and his team along with Tosca Debt Capital in the MBO transaction and look forward to working together during this next phase of growth.”

Advisers on the transaction include: DLA (TDC), Grant Thornton (Tax – TDC), Dow Schofield Watts (Due Diligence – TDC), Hill Dickinson (Management), Shoosmiths (Shawbrook).

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