Elysian acquires Fastflow

Founder Neil Armstrong, who continues to lead the group, also reinvested as part of the deal.

Following the transaction, Fastflow will look to grow organically off the back of its recent appointment as a tier-one contractor for Scottish Water. It will also consider an acquisitive growth strategy for its social housing maintenance business DWSS, which the company acquired in 2014.

The deal is the GP's first investment of 2017 and its third with capital drawn from its second fund, which held a final close on £250m in July 2015. The value of the deal is undisclosed, though the fund targets deals within the £10-100m size range.

In August 2016, the fund acquired aggregates and recycling business Raymond Brown Minerals and Recycling via a management buyout.

Debt
Lloyds Bank Commercial Banking and Yorkshire Bank provided a senior debt package and working capital facilities to support the transaction.

Company
Founded in 2005 as a spinout from Northumbrian Water and headquartered in Washington, Tyne and Wear, Fastflow provides maintenance services for water and gas infrastructure, in addition to social housing. The business has a headcount of 600 with additional operations in Oxford, London, Scotland, Warrington and Reading.

The business is anticipating a turnover of more than £75m for the year ending March 2017, according to a statement issued by the GP. It generated revenues of £70.3m in the year ending March 2016, according to publicly available documents, with EBIT of £4m.

People
Elysian Capital – Ken Terry (CEO).
Fastflow Group – Neil Armstrong (founder, CEO).

Advisers
Equity – KPMG (financial due diligence, tax); Credo (commercial due diligence); Addleshaw Goddard (legal); Aon (insurance due diligence).
Vendor – Cavu Corporate Finance (corporate finance); Deloitte (tax); DAC Beechcroft (legal).
Debt – Eversheds (legal).

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