Private equity firm LDC has backed the secondary buyout of energy price comparison business Love Energy with a £25 million investment.
The deal marks a partial exit for NVM Private Equity, which first backed the business in 2015.
Love Energy was founded in 2007 and specialises in the comparison of business energy prices. The business, which is headquartered in Bolton, connects small and medium-sized firms with the UK energy supplier that offers the most appropriate gas and electricity tariff, then helps them switch provider.
It has grown rapidly and in 2017 had revenues of £17.4 million, up from £13.2 million the previous year. It has more than 40,000 customers across the UK.
LDC’s investment will be used to accelerate Love Energy’s organic growth strategy, including the expansion of its corporate services division Love Energy Solutions, further investment in its proprietary technology platforms and continued diversification into the water, telecoms and insurance markets.
As part of the deal, Steve Weller, the former CEO of energy switching service uSwitch, will join the board as non-executive chair.
Phil Foster, Co-founder and CEO of Love Energy, said: “Over the past three years, and with the support of NVM, we’ve invested heavily in technology and expanded into new, untapped markets. This has helped us to bring more of our market-leading services to businesses across the UK, but we’re only at the tip of the iceberg when it comes to how we can help companies to save money.”
Richard Ibbett, Investment Director at LDC in Manchester, added: “Love Energy Savings is a fantastic business with an entrepreneurial, ambitious management team at the helm. Under Phil’s stewardship, it has continued to invest in its offering and diversify to create scale, yet the quality of service it provides to customers, suppliers and intermediaries has never wavered. In a market that is crying out for transparency this has set the business apart and with a commitment to help save businesses money there is even further opportunity for growth.”