- The company was formed in November last year when its backers, SCF Partners, put five firms in its portfolio under one umbrella;
- Headquartered in Aberdeen, the group’s annual group revenues have surpassed £500m, with clients including blue-chip brands such as: BP, Shell, BAE Systems and M&S;
- The business is at the forefront of the energy transition, providing decarbonisation and clean energy solutions, along with engineering and operations support services;
- Acquisitions are core to D2Zero’s growth strategy – it has already made several this year, with a strong pipeline of additional acquisitions for the future.
OakNorth, the digital bank for entrepreneurs, by entrepreneurs, has partnered with HSBC, Natwest, and Virgin Money, amongst others on a £150m club lending facility to D2Zero.
The business is backed by SCF Partners, the Texas-based private equity firm focused on driving positive transformation in the energy industry. It was created in November last year year through combining five companies in SCF’s portfolio – Score Group, Hydrasun, Fuel Cell Systems, Powerstar, and Global E&C (rebranded to nexos) – three of which had been trading for more than 20 years. The business provides engineering and operations support services to clients across a multitude of sectors. Some of its most well-known clients include: BP, Woodside Energy, Shell, Baker Hughes, M&S, Canadian Natural Resources, and BAE Systems. It supports clients across four key areas of the energy transition: emissions reduction; clean hydrogen; power efficiency and resilience management; and carbon capture and storage.
Acquisitions are core to D2Zero’s strategy, helping it boost annual group revenues to over £500m. It has made several acquisitions this year and has identified a strong pipeline of other high-quality companies that can help it expand its expertise and accelerate future growth. The £150m club lending facility – of which OakNorth provided £23m – 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, commented on the transaction: “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.”
ENDS
Notes to editors
About OakNorth
Launched in September 2015, OakNorth is the digital bank for entrepreneurs, by entrepreneurs, empowering the lower mid-market (businesses with £1m-£100m turnover) to support growth, prosperity, and innovation for the benefit of all.
Since its launch, the bank has:
- Lent over £12bn to these businesses, directly helping with the creation of 47,000 new jobs and 29,000 new homes across the UK;
- Provide deposit services to over c.285,000 savers.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.
Media contact
Valentina Kristensen, Corporate Affairs Director – [email protected] / [email protected] / 0757 234 9009