ICC Venture Capital has invested £6.5 million (€8.25 million) to take a 45 per cent shareholding in the management buyout (MBO) of British utility services provider, Kentons Utilities and Developments Ltd.

The MBO is being led by Kentons' Kildare-born managing director, Mr Diarmaid Kelly, and its Mayo-born contracts director, Mr John McGowan. The total transaction size, including debt assumption, is £23 million. Kentons, which is based in Yorkshire, employs around 850 people and has operations throughout Britain. It provides investigation, design, build and maintenance services to major utility companies in Britain, including Yorkshire Water, British Gas, Northumbria Water and BG Transco.

The company, which is being sold by Utilitec, reported pre-tax profits of £3 million sterling (€4.9 million) on turnover of £40 million last year.

"Growth opportunities in the market offer the prospect for higher than average equity returns in the medium term," said Ms Prisca Grady, investment director at ICC Venture Capital.