A FTSE 100 company has acquired a minority shareholding in Truro-based ground source heat pump manufacturer Kensa Group.
Legal & General’s 36% stake in the Kensa will advance Kensa Heat Pumps’ research and development programme, expand Kensa Contracting’s district heating shared ground loop array installations, and fund zero-cost heating infrastructure through Kensa Utilities.
The partnership with Kensa complements Legal & General’s existing clean energy investment portfolio, which now includes low carbon heat, transport and power generation.
The investment from Legal & General will enable Kensa to grow rapidly in a post global pandemic environment and supports the partnership’s ambition to form part of the UK’s solution to reaching net zero carbon emissions by 2050.
Kensa Group CEO Simon Lomax said: “This is a significant investment not only for Kensa, but also for the low carbon economy and our region. Legal & General’s support will deliver vital employment opportunities in Cornwall and bolster UK manufacturing in the wake of Covid-19, as attentions return to combatting the effects of climate change and meeting the UK’s 2050 net zero carbon target.
“Together with the delivery of our expanded manufacturing premises, Kensa’s partnership with Legal & General aims to install 50,000 ground source heat pumps in the mid-term; a weighty contribution to quickly tackling carbon emissions, air pollution and fuel poverty. Our longer-term ambitions will see the large-scale decarbonisation of the UK’s energy infrastructure with smart cities embracing harmonious low-carbon technology.”
A team of corporate finance specialists at PKF Francis Clark, led by Paul Crocker and including Rob Gear and Ed Marffy, were brought in to advise Kensa’s shareholders and senior management team on the fundraising process and share sale. James Orpin and his company commercial team at Tozers, including Amy Laver and Oli Kent, provided support in negotiating and completing the legal documentation.