Waterland-backed Net Zero adds two more green construction services firms in push for scale

The investment house has acquired Caldor Solar and Zetta Home Services, which will merge with Gaffney Mechanical and O’Connor Heating and Plumbing, both bought towards the end of 2023.

‘There is a need for large-scale adoption of renewable energy solutions’

In all four cases the businesses are being acquired under strategic partnership structures which see incumbent management taking stakes in the new group while retaining their leadership roles in what will now be divisions of the overall group.

Kildare-based Caldor PV is headed by Eoin O’Flaherty and has been around since 2015. It provides solar PV installation nationally to homeowners and the commercial and agricultural sectors.

Louth-based Zetta Home Services is a specialist provider of heat pumps and maintenance services, and solar PV installation and maintenance, primarily to developers of new houses and apartments.

It is headed by Waterland Ireland partner and chair of Net Zero Group, Laura Dillon, who said the business is creating a one-stop-shop for business-to-business including developers, housing bodies and local authorities as well as for individual customers across new build and retrofit energy products.

“We want to build the biggest platform for new build and retrofit that’s capable of offering a full range of services, can deal with large-scale customers and can develop national reach,” she said.

The business is looking to “double or treble” existing combined turnover of around €100m at pace.

“Given the scale of what has to be done to upgrade energy efficiency nationally, there is a need for large-scale adoption of renewable energy solutions,” she said.

‘I don’t believe this sector is dependent on regulatory tariffs’

The sector is currently fragmented, with a large number of providers often in relatively niche segments or geographies, she said.

Waterland has existing investments in the same sector in Belgium and the Netherlands, providing a good insight into how the sector is likely to develop here, she said.

Asked if the backlash against environmental policies seen in European elections last weekend could threaten the business case for Net Zero’s expansion, she said the business would not rely on state subsidies and supports for retrofit to make financial sense.

“We need to be careful around where financing for some of this work comes from, but I don’t believe this sector is dependent on regulatory tariffs. They are supportive, but of things which have to happen,” she said.

The latest bolt-on deals push combined numbers working in the Net Zero Group companies to almost 550 people.

Waterland is active across a number of sectors in Ireland. In 2019 it bought nursing home operator Silver Stream and has since added four more homes, bringing its total across Ireland to 11.

It has taken majority stakes in Westmeath-based fire protection business Writech and Meath-based specialist cabling firm MTM Engineering, both of which embarked on major expansion drives after being acquired.