Fulcrum agrees to £22m deal for firm

Fulcrum, the multi-utility infrastructure and services provider based in Sheffield, has entered into a conditional agreement to acquire Dunamis, an electrical connections company, in a deal worth £22m.
Fulcrums acquisition of Dunamis creates one of the leading independent utility infrastructure groups in the UKFulcrums acquisition of Dunamis creates one of the leading independent utility infrastructure groups in the UK
Fulcrums acquisition of Dunamis creates one of the leading independent utility infrastructure groups in the UK

The acquisition will create one of the UK’s leading gas and electrical infrastructure services groups, and enable AIM-listed Fulcrum to expand further into the electrical connections market, which is estimated to be worth more than £500m per year.

The deal represents the latest bid for electrical market growth by Fulcrum, which employs more than 200 people, around half of them in Sheffield. At the end of 2017, the firm secured its Independent Distribution Network Operator (iDNO) licence, which enables it to adopt, own and operate electrical assets.

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Martin Harrison, Fulcrum’s chief executive officer, said: “This acquisition meets key strategic goals for Fulcrum – accelerating our future growth through the cross-selling of gas and electrical connection services, increasing electrical asset adoption opportunities and significantly expanding and extending our direct delivery capability within the electrical infrastructure market.”

The Dunamis Group, which is based in Bury St Edmunds, was founded in 2012 by chairman Wayne Hayes and has quickly become one of the UK’s leading independent electrical connections providers; it now has four divisions and employs 48 people. As part of an enlarged Fulcrum Group, it will continue to trade under its existing brands.

Mr Hayes will join the board of Fulcrum as a non-executive dir-ector alongside Fulcrum’s chief financial officer, Hazel Griffiths, who becomes executive director.

The £22m price tag was funded through a combination of Fulcrum’s existing cash reserves and a placing of 17,376,000 new ordinary shares to raise £10.4m. Fulcrum will also issue £11.2m of new ordinary shares to the sellers.

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Mr Harrison added: “Under Wayne’s leadership, Dunamis has become an established and respected business within the electrical infrastructure market. Together with the combined expertise of the enlarged group, we have a real opportunity to rapidly develop our position within the utility services market.

“I am particularly pleased that Wayne and the senior management will become shareholders in the enlarged group and look forward to welcoming Wayne to our board.”

Fulcrum was advised by Walker 
Morris; Dunamis by GCA Altium.

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