Spark Energy, the niche energy supplier to the lettings sector, has announced that a management buyout of the company is close to completion.

The MBO of the business, launched in 2007, is led by CEO Chris Gauld and CFO Hamish Osborn.

Four large institutional investors, including a major UK pension fund, a European family office and a Middle Eastern investment bank, are backing the deal.

Spark is on course to deliver turnover of £125m in the year to the end of this month.

While the value of the deal has not been disclosed, it would see Spark’s current shareholders realising a return on their investments and Spark is recommending the deal to its shareholders.

If approved, the transaction is expected to be completed in August.

A spokesperson told EYE that non-executive director Nick Leeming is supportive of the MBO.

Leeming – who founded Propertyfinder, now Zoopla – would leave the board along with the other non-exec in the event of an MBO.

However, the spokesperson said Leeming would continue to work with the company in future, possibly in a formal role as adviser.