GLASGOW-based generator specialist DTGen has bought a business in England in a move that will support growth across the UK as backers said the outlook for deal activity remains strong, writes Mark Williamson.

The group has acquired the sales and projects division of Bristol-based Power Electrics Generators (“PEG”), from its owners John and Andy Pullin.

The price of the deal was not disclosed. However, it looks like a significant move for DTGen, which is backed by the Nevis Capital investment business. Nevis initiated and led on the PEG deal.

It is understood the acquisition is expected to add around £10 million to the turnover of DTGen, which was formerly known as Dieselec Thistle Generators. DTGen grew turnover to around £20m in the year to June, from £16m in the preceding year.

The Herald: Picture: DTGenPicture: DTGen

Its chairman, Paul Moore, said the PEG acquisition was an exciting development, adding: “We’re creating a truly national generator business of scale, and this deal will accelerate our expansion throughout the UK.”

The base in Bristol will extend DTGen’s reach into southern England. DTGen has a depot in the midlands town of Rugby.

The deal provides a fresh sign that mergers and acquisitions activity has picked up after slowing down amid the fallout from the pandemic and the Brexit vote.

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in November Nevis added the first new company to its portfolio for four years, by backing a management buyout of Clydebank-based Hardie Polymers.

Nevis partner Brian Aitken confirmed yesterday that the investment business is ready to do more deals. He said the mergers and acquisitions market is as buoyant as he has seen for a long time, in spite of uncertainty about the potential impact of the war in Ukraine on the economy.The Herald: Brian Aitken Picture: Nevis CapitalBrian Aitken Picture: Nevis Capital

Nevis was founded by John and James Pirrie in 2007 using proceeds of the £62 million sale of the LCH Generators business they developed to Speedy Hire. Mr Aitken was a dealmaker at PwC before becoming a founding partner in Nevis.