Kendra Energy transitions to employee ownership in Shawbrook-backed deal

Kendra Energy Solutions, a leading provider of energy management systems and services, has announced its transition to an employee ownership trust (EOT) in a seven-figure deal backed by specialist lender Shawbrook.

Founded in 1999, Kendra Energy Solutions has established itself as a key player in the energy management sector, offering design, installation, and maintenance services for BEMS that monitor and control buildings’ electrical and mechanical systems such as heating, ventilation, and lighting. The company operates six offices across the UK and employs 180 staff, including 100 engineers, serving a diverse range of blue-chip clients.

The decision to transition to employee ownership was led by co-owners Gary Ford and Chris Mills, who will continue to manage the business along with the senior leadership team. According to the company, this move is part of its ongoing evolution as a people-focused organisation and aims to retain and attract talent within the competitive energy management market.

Co-Managing Director Gary Ford explained the rationale behind the move:

“At Kendra, we have long prided ourselves on our employee-first model, and therefore, when the time came to plan for a future exit for myself and Chris, pursuing an EOT was the obvious strategy. Shawbrook has a proven track record of completing and funding these types of deals and were an obvious choice for us. It was a pleasure to work with the team, and we look forward to watching Kendra continue to thrive under the new business model.”

The transition to an EOT allows employees to become stakeholders in the company, an approach that has been gaining momentum across various industries. Employee ownership has been shown to improve business performance, increase job satisfaction, and provide greater long-term stability.

John Palmer, Senior Director at Shawbrook, highlighted the significance of the partnership:

“Kendra is a strong business and a true leader in its field. It was a pleasure to work with them on this transaction. At Shawbrook, we continue to champion businesses taking the EOT route and pride ourselves on our experience in supporting with the complexities involved in these transitions.”

Shawbrook’s involvement in this deal underscores its growing role in facilitating employee ownership schemes, which provide a viable exit strategy for business owners while ensuring continuity and stability for employees.

In the deal, Shoosmiths acted on behalf of Shawbrook, while Mazars conducted financial due diligence. Legal advice for Kendra Energy Solutions was provided by Osborne Clarke.