BlueSky Corporate Finance Limited

Barclays Ventures backs £9 million merger of Four Seasons Control and AAS

Barclays Ventures announced today that it has backed the £9 million takeover by Four Seasons Control Limited (FSC) of Air-conditioning and Associated Services Limited (AAS). The deal sees the bringing together of the two air conditioning design, installation and maintenance specialists.

Based in Leeds, FSC was the subject of a management buy in (MBI) in October 2005 led by Tom Keeping. FSC has several high profile customers including WH Smith, Waterstones, and William Hill and since the original MBI it has increased its turnover, customer list and service offering. AAS is based and operates primarily in the South-East, but it does have a number of national blue chip customers including Nationwide Building Society, Costa Coffee and Carphone Warehouse. The merger sees AAS joining the group and provides a southern base from which further growth will be developed.

The enlarged group expects to benefit from strong growth in the air-conditioning market which is being driven by an increasing legislative regime and by increasing demand from the public which expects shops, offices, leisure and public buildings to provide the benefits of air-conditioning.

The enlarged group will be headed by Tom Keeping, and the vendor of AAS, Malcolm Lee, will become Business Development Director, joining existing Directors, Peter Singh and Adrian Butcher. The board will be supplemented by Maurice McBride who will join as Non-Executive Chairman. McBride has a wealth of experience in private equity-backed businesses including Barclays Ventures successful deal with Integral, the national facilities management business.

Cobbetts and PKF advised Barclays Ventures. Senior debt and working capital facilities for the deal were provided by HBOS.

BlueSky identified AAS as a potential acquisition target and assisted FSC in raising both debt and equity finance.