Clean energy group D2Zero has secured a new £150million lending facility from a group of banks.
The Aberdeen-headquartered firm said it planned to use the money for acquisitions and had identified a number of potential deals.
Oaknorth, HSBC, NatWest and Virgin Money are among the lenders as well as existing backer SCF Partners.
D2Zero was created by combining five companies from within SCF’s portfolio earlier this year: Score Group, Hydrasun, Fuel Cell Systems, Powerstar, and Global E&C (rebranded to nexos).
The firm has since completed two further acquisitions and now employs over 4,000 people.
The £150million club lending facility will give D2Zero the financial firepower to pursue further acquisitions, solidifying its position as a clean energy powerhouse and one of Scotland’s fastest growing companies.
Bob Drummond, Group CEO of D2Zero, said: “D2Zero is at the forefront of the energy transition, helping our clients meet the dual challenge of decarbonising traditional energy sources, whilst accelerating the transition to renewable energy.
"Less than a year into our journey as a group, we have made great strides, successfully completing the acquisition of several companies. With the backing of SCF Partners, as well as this incredibly strong syndicate of banks, including OakNorth, we are well-positioned for the future, and look forward to supporting more businesses in their transition journeys.”
Stuart Blair, Director of Debt Finance at OakNorth, added: “The businesses that made up D2Zero at the time of its creation, have a long-standing history of providing often mission critical products and maintenance services to large blue-chip corporates.
"The group has benefitted from tailwinds of the global transition to net zero, and has capitalised on geopolitical shifts towards energy diversification, playing a fundamental role in the decarbonisation of core end markets which are considered critical infrastructure.
"The management team, led by Bob, has a proven track record in delivering sustainable earnings and with the backing of SCF Partners, is in a prime position to continue building on its initial success. As a bank with an ambitious net zero strategy of our own, we’re proud to be supporting a business that is playing such a central role in the transition.”