RBS and Alchemy to back £100m forestry and landscaping business
Fountains Group, the £100m environmental management company that was ring-fenced from social housing contractor Connaught when it fell into administration, has secured future investors.
Fountains, which operates in the forestry, utilities and infrastructure sectors, has agreed a deal with Royal Bank of Scotland and Alchemy Partners, in addition to a new working capital facility.
Chief executive Richard Haddon told Building: “We’re following a growth strategy and we’re continuing with that.
“The reason that we didn’t go into administration is because we were performing well. Our business plan demonstrates what we can do over the next three years.”
Haddon did not disclose details of the three-year plan, which kicks off today, except to confirm that the company “is not looking to move out of current markets” and that no job losses were planned as part of the deal.
The company currently has three aspects to its business. A forestry division active in both the UK and the US, a UK utilities business that manages vegetation under power lines and a UK infrastructure arm that handles parks, gardens and landscaping.
Civil work tends to be sub-contracted.
Fountains was acquired by Connaught in 2009, merging with the environmental arm of the construction business, Connaught Environmental.
One year later Connaught went into administration after it failed to secure funding.