PKF Smith Cooper assists Duke Royalty on £5m F&S deal

PKF Smith Cooper’s fire and security specialists have advised capital solutions provider Duke Royalty on providing £5m debt royalty financing to New Path Fire and Security, an investment holding company operating in the UK&I fire and security (F&S) sector. 

The funding agreement also involved Duke Royalty becoming a 15% shareholder in New Path, and agreeing a total funding commitment of up to £20m to support New Path’s buy-and-build strategy across the UK.

Duke Royalty was said to have turned to PKF SC Corporate Finance to support its first deal in the F&S sector due to the firm’s “growing specialism and expertise” in the sector. PKF’s role was to undertake a comprehensive commercial diligence exercise on New Path, its position in the market, and the wider F&S market.

Alex Hibbard, vice president at Duke Royalty, said: “Duke is excited to be partnering with New Path to support their buy and build strategy; we look forward to helping them to continue consolidating a mission-critical sector. 

“Duke looked to the PKF Smith Cooper CF team for a review of the sectors and sub-sectors that New Path operates in, addressing a detailed scope with well-researched analysis, delivered in a short time window. We were happy with their insightful output, which was delivered within our timeframe.”

James Ward, corporate finance director at PKF Smith Cooper and leader of the F&S team, added: “It’s been a privilege to assist Duke Royalty in making its first funding transaction in the F&S sector; they recognised the potential of New Path’s plan to create a group of specialist F&S businesses with a diverse service offering in the highly fragmented F&S sector. 

“Duke’s funding package will enable New Path to complete on two deals in advanced stages of negotiation, and to continue their expansion thereafter. We wish New Path’s management and Duke Royalty, with which we’ve worked on two previous transactions, every success with their strategy.”