A Quercus International team, led by Mark Whelan, Neil Giles and Michael Mortimor, has advised the shareholders of Capital Compactors Limited (“CCL” or the “Company”) on the sale of the Company to Impact Environmental Group (“IEG”), a portfolio company of US Private Equity firm Aurora Capital Partners .
CCL is a leading UK-based designer, manufacturer and supplier of waste compactors and recycling balers, operating from a state-of-art, purpose-built manufacturing and office facility in Barnsley, South Yorkshire, supported by its head office and support centre located in Bognor Regis, West Sussex. CCL was founded in 2000 by Alistair and Jo Lindsay, both of whom have led the business since its inception.
CCL becomes the fourth major UK waste products and services business to join IEG alongside Taylor, DuraFlex and UKCM. IEG’s decision to acquire CCL supports its customer-service oriented growth plan, which centres on building a comprehensive waste solutions business in the UK through ‘Best of British’ brands focused on sustainability. IEG anticipates a seamless transition as all of CCL’s employees remain in place including Managing Director, Daniel Parsons and Technical Director, Laurence Lindsay, in addition to support by IEG’s EMEA Managing Director, Mike Braddock.
Jo Lindsay, Co-Founder of CCL said:
“When Alistair & I started CCL in March 2000 we had a dream to one day become the UK’s leading supplier of top-quality waste compaction and recycling machinery. 23 years on we believe we have achieved that dream, together with our amazing workforce, and the support of our loyal customers, suppliers and business associates. As the company has grown, CCL’s brand has become highly respected throughout the waste industry. Its reputation for providing reliable equipment and excellent service has attracted many offers to acquire the business, but for us to consider handing over our much-loved company we had to feel sure whoever took over would be the perfect fit. We truly feel we have found that in IEG. With the environmentally conscious companies within their Group, we believe we have an ideal compatibility with IEG’s values, culture and strategy, and their acquisition will allow CCL to reach its full potential and continue onto the next level. More importantly, the further expansion offers exciting opportunities to all its staff members - our highly valued Team Capital - who have made CCL a company to be immensely proud of!”
Mike Braddock adds:
“The acquisition of CCL adds yet another premier service offering to the IEG EMEA portfolio. We’ve been so fortunate to build the EMEA family with such respected companies now adding another in CCL. Their value and reputation in the waste industry make us a more complete supplier to our core Customers by providing Bins, Wear Parts, Services and now Compactors and Balers.”
Mark Whelan, Partner at Quercus comments:
“We are delighted to have advised Al and Jo Lindsay on the sale of CCL which they developed and grew from an idea into the UK’s leading manufacturer of high-quality waste compaction and baling equipment. Al and Jo were keen to retire and asked Quercus International to help them find a buyer who would both protect and enhance their legacy. Through a pre-existing relationship we had with IEG in the UK, we found a buyer that would be able to do just that. We are sure that under IEG’s ownership, CCL and its excellent team will continue to flourish and innovate and be able to maintain its position as a key provider of waste management and recycling solutions in the UK.”
This transaction illustrates the strength of Quercus International within both the waste and industrial sectors, and the third completion within the industrial sector in as many months.
A Quercus International team led by Tully Cornick and Andrew Clegg has advised Sureserve Group Limited (“Sureserve”) on the sale of Precision Lift Services Limited (“Precision”) to Anlev UK Limited, a subsidiary of ATAL, a Hong Kong listed electrical and mechanical engineering service provider.
Based in Essex, Precision sells, installs and modernises all types of lifts and provides repair and maintenance services to clients across the South East of England. Sureserve had previously announced that Precision was no longer core and that they were looking for a new owner who could help the business to realise its growth ambitions.
The acquisition represents another milestone in ATAL’s strategy to expand internationally following the establishment of Anlev UK in 2020 to enter the European market. Today, Anlev manufactures products from its own facilities in Nanjing, China which are exported to over 20 countries across six continents.
Nicholas Chapman, Group Commercial Finance Director of Sureserve said:
“We are delighted that Precision is now joining an organisation focused on maximising the growth opportunities in the UK lifts market. We are also pleased to have benefited from the expertise and advice of Quercus International whose experience and commitment were significant factors in achieving a successful result.”
Tully Cornick, Associate Partner of Quercus International, added:
“We have very much enjoyed working with Nik and the Sureserve team on this important transaction and we are delighted to have found Precision such a good home. The business has an excellent reputation and longstanding client base and the combination presents Anlev UK with an excellent opportunity to expand their presence in the UK.”
A Quercus Corporate Finance team, led by Michael Mortimor and Andrew Clegg, has advised the shareholders of Blue Bear Systems Group Limited (“Blue Bear” or the “Company”) on the sale of the Company to Saab UK Limited (“Saab”).
Blue Bear is a world-leading provider of AI-enabled autonomous swarm systems for complex defence and security applications. Based in Bedford (UK), Blue Bear employs 65 employees with a turnover of £8 million in 2022.
The acquisition is part of Saab’s continued international growth journey across key markets, which include the United Kingdom, Australia, the United States and Germany.
The combination of Saab’s world-leading products, services and solutions, and Blue Bear’s experience as an agile integrator of AI-enabled autonomous swarm systems will be a powerful driver of Saab’s future capabilities. Blue Bear will contribute to Saab’s existing activities worldwide and Saab will benefit from Blue Bear’s expertise in autonomy and swarming, as well as command and control systems.
Within Saab, Blue Bear will be a centre for Rapid Concept Development providing expertise and scaling-up innovation.
Building on the recent Wixroyd and Keronite transactions, Blue Bear once again demonstrates Quercus Corporate Finance’s strength in the industrial technology sector.
Dr Yoge Patel, CEO of Blue Bear said:
“Mike Mortimor was simply superb. Transactions are stressful - Mike’s adeptness in pulling together different strands of the process, using not just his Corporate Finance knowledge but also his ex-CFO experiences, allowed us to execute with confidence and pace. Grace and humour can often be a rarity in fiscal matters, but it is Mike’s natural style.
This remarkable style combined with his sheer talent and his eagerness to engage whenever needed, was just priceless. Most importantly, I felt very supported throughout the whole process - on my terms, not anyone else’s.”
Mike Mortimor, Partner of Quercus Corporate Finance, said:
“We are honoured and humbled to have been trusted by Dr Yoge Patel to advise on this significant transaction for the UK defence sector. Under the leadership of Dr Yoge Patel and her team, Blue Bear has continually been at the forefront of developing and delivering, AI-enabled autonomous swarm systems for the most complex environments – products and services that will play an increasingly vital role in ensuring a safer world. As a centre for Rapid Concept Development, Blue Bear has an exciting future within Saab.”
Future Industrial Services Limited (‘FIS’), a leading provider of hazardous waste management and specialist industrial service,s has been sold to specialist waste and resource management group, Augean Limited.
Headquartered in Kirkby with sites in Berwick, Hull, Rugby, Honiton and Plymouth, FIS works with clients across government, major utilities and national & multi-national companies to provide a range of specialised and cost-effective hazardous waste and industrial services.
Since acquiring the business in April 2017 in a Northedge Capital backed Management Buy-Out, CEO David Lusher and his team have developed FIS into one of the leading independent providers of hazardous waste services in the UK, dealing with a variety of complex waste streams across its five permitted processing, treatment and recovery sites which includes the UK’s only Mercury recovery facility. Alongside this hazardous waste offering, FIS has established a specialist industrial services business with a market-leading position in Energy from Waste (‘EfW’) plant maintenance and cleaning.
FIS is highly complementary to Augean’s existing hazardous waste operations but also provides the ability to leverage FIS’s portfolio of industrial services into Augean’s customers within the Energy, Nuclear, Construction and Oil & Gas markets.
A team from Quercus Corporate Finance led by Mark Whelan and Neil Giles advised the shareholders of FIS.
Mark Whelan, Partner at Quercus said:
“On the back of continued UK investment in Energy from Waste plants, FIS has established itself as the leading independent supplier of critical EfW maintenance services in the UK. This, coupled with its broader suite of industrial services and its comprehensive hazardous waste collection, treatment and recovery capabilities, made this a compelling acquisition opportunity for Augean. There are significant operational opportunities across the two businesses, with each bringing unique capabilities to the table which will deliver an enhanced service offering for customers going forward. We are absolutely delighted to have worked with David Lusher and his exceptional management team”.
As Terra Alliance celebrates its 20th year, Quercus is pleased to announce that member firms completed 88 transactions with a combined deal value of more than US$13 billion in 2022. For the five years to December 2022, member firms completed 459 transactions with a combined deal value of more than US$115 billion. Over half of last year's deals were in the Consumer, Industrial and Technology sectors.
Andrew Clegg, Quercus Partner and Terra Alliance Steering Committee member said:
"These excellent results are underpinned by deep, consistent levels of cooperation between our 400 colleagues across the globe. Here in the UK, we saw a marked uptick in overseas interest in UK assets in 2022 and we see similar trends in our current order book. Cross-border activity will continue to take centre stage in M&A as businesses seek out new markets for growth and secure supply chains."
About Terra Alliance
Terra Alliance (www.terra-alliance.com) is a leading international alliance of investments banks and corporate finance advisory firms with operations in Africa, Asia, Australasia, Europe, the Middle East, North America and South America. Quercus Corporate Finance is the exclusive UK member firm.
The alliance provides member firms with a strong platform for offering clients enhanced identification of, and access to, potential counter-parties and market intelligence. Terra Alliance was formed in 2002 with member firms covering more than 40 countries.
Quercus Corporate Finance has announced the arrival of Jim Clark as an Associate Partner to support ongoing growth in demand for its services. Jim is the firm’s third senior appointment in two months, with Tully Cornick having previously joined as an Associate Partner and Michael Mortimor having been promoted to partner.
Jim is an experienced dealmaker who brings a wealth of M&A and advisory experience having worked in Corporate Finance for 25 years. He qualified as a Chartered Accountant with EY and subsequently worked for KPMG in their Transaction Services team before specialising in Lead Advisory. Jim has a track record of success supporting entrepreneurs, management teams, private equity houses and corporates.
Speaking about his new role, Jim said:
“Quercus is a byword for quality and excellence in M&A and I am delighted to be joining a team with such a strong track record of delivery. I’m in no doubt that 2023 will be a busy year despite the short-term inflationary headwinds. Speaking to my clients it is clear that there is capital and appetite in large supply, particularly among private equity firms and I expect buyers will continue to pay a premium for quality businesses.”
Andrew Clegg, Quercus Partner, added:
“Jim’s appointment is the next step in our strategy to build a world-class advisory firm. He has a track record of success and is exceedingly well connected. Jim’s experience will be invaluable in the year ahead as our clients seek to meet the demands of today’s economic climate, whether that be with their growth plans, accessing new sources of funding or planning for exit.”
Quercus Corporate Finance is delighted to announce that Michael Mortimor has been promoted to the partnership as head of Industrial Technology.
Michael has spent over 20 years specialising in Industrial Technology M&A and has completed transactions in the UK, North America, Europe, Russia and China. His clients have included corporates, private equity houses and owner-managed businesses. In 2022, Michael led the Quercus teams which sold Keronite, a surface treatment business, to Curtiss-Wright Corporation in the USA and Wixroyd, a specialist components supplier, to Essentra Plc.
Michael started his career at KPMG Corporate Finance and rose to co-lead their Diversified Industrials M&A team in London. During this time, he advised on some of KPMG’s most high-profile transactions. He subsequently held senior strategy, M&A and finance roles at Smiths Group Plc and McLaren Automotive prior to joining Quercus in May 2021.
Michael said:
“I am delighted to be joining the Quercus partnership to lead the firm’s growth plans in the Industrial Technology sector. We have been extremely busy over the past 18 months and believe there is significant potential to build on this success in the coming year. I look forward to building new relationships and providing excellent service to our growing client base.”
Nick Standen, Quercus Chairman, added:
“While we regularly welcome colleagues from outside the firm, it is particularly satisfying to be able to promote exceptional talent from within. I am therefore delighted with Michael’s appointment. He is renowned for the depth of his sector knowledge and sets the standard for dedication and commitment to his clients. Michael’s appointment reflects our ambition to expand our Industrial Technology practice and to continue to build a world-class advisory firm.”
The Quercus team, led by Michael Mortimor, Andrew Clegg and Mark Winkler, have advised the shareholders of Wixroyd Holdings Limited (the “Wixroyd Group”) on the sale of the company to Essentra Plc (Essentra).
Based in Chichester, the Wixroyd Group has three leading UK brands of differentiated mechanical components. With a 70 year history, it has a reputation for high quality “c-class” components delivered with an excellent level of service to its 9,000 customers. The Wixroyd Group manufactures and supplies one of the broadest ranges of innovative mechanical components, with a strong product portfolio of over 100,000 products available across the online range providing solutions for product design and engineering challenges.
The acquisition is Essentra’s first since it outlined its new strategy as a pure-play components business. The acquisition of Wixroyd Group expands Essentra’s capabilities in hardware components and creates significant additional cross-selling opportunities across a range of Essentra’s current end markets
The consideration payable for the Wixroyd Group comprises an initial Enterprise Value of £29.5m and up to £7.0m deferred earn-out consideration linked to revenue performance in FY23.
Marcus Iafrate, CEO of Wixroyd:
“The achievements of the Wixroyd team, and the role our products have played in enabling design engineers across the UK to innovate and solve countless engineering challenges, has been a great source of pride for me and my brother Anthony as we have guided the Wixroyd Group over the last 30 years. Throughout the process, Mike and Quercus have demonstrated a deep understanding of our business and the sector in which we operate. This has been combined with high quality advice and service throughout. We are very excited about the enhanced opportunities that the combination with Essentra will generate”
Michael Mortimor, Associate Partner at Quercus said
“Having been owned by the Iafrate family since it’s foundation over 70 years ago, we are honoured to have been trusted by Marcus and his family to deliver a successful sale of Wixroyd. Under the leadership of Marcus and Anthony Iafrate, Wixroyd has delivered consistent growth and demonstrated outstanding margins. In Essentra, we are delighted to have found a strategic home for Wixroyd that can further accelerate its growth”
Quercus Corporate Finance has advised the shareholders of Keronite Group Limited on the company’s sale to Curtiss-Wright Corporation for £29m.
Headquartered in the UK and with operations in North America, Keronite is a leading provider of Plasma Electrolytic Oxidation (PEO) surface treatment applications offering corrosion protection, wear resistance, thermal protection and electrical insulation for the defence, commercial aerospace and industrial vehicle markets, and also in semiconductor manufacturing.
Keronite’s proprietary PEO surface treatment process utilizes an environmentally friendly method of producing ceramic layers on light alloys such as aluminium, magnesium and titanium to enhance their inherent performance characteristics. Through Keronite’s process, lightweight metals are afforded the wear and performance properties of high-weight materials such as carbide or steel and are well-suited to support demanding applications in high integrity applications.
US-headquartered Curtiss-Wright is a global integrated business that provides highly engineered products, solutions and services, mainly to aerospace & defence markets, as well as critical technologies in demanding commercial power, process and industrial applications. Keronite will operate within Curtiss-Wright's Aerospace & Industrial segment and will increase the breadth of their surface treatment services portfolio to provide unique and complementary coatings technologies.
Nick Habgood, Azini Capital Partners said:
“We have thoroughly enjoyed the journey with Keronite and its sale represents a good result for the company’s shareholders, including Azini Capital. We wish Matt and the team the very best of luck as they embark on the next stage of the company’s development. Quercus have been very good partners throughout and Mike’s sector knowledge, international connections and creativity were of great value to us throughout the process.”
Matt Hamblin, CEO of Keronite added:
“Keronite represents a great fit for Curtiss-Wright and we are very excited about the enhanced opportunities that the combination will generate. Mike has been a great support to me and his attention to detail and commercial experience have been a real help from start to finish”
Michael Mortimor, Associate Partner at Quercus said:
“The cross-border nature of this deal represents a vote of confidence in the British economy and we are delighted with the outcome. It has been a real pleasure working with Nick and Matt, and under their stewardship Keronite has successfully developed, industrialised and commercialised PEO technology and become a highly successful business.”
The Terra Alliance held its 40th international M&A conference last week in Chicago, hosted by North American member firm, Origin Merchant Partners. The meeting marked the 20th anniversary of the Alliance which was originally formed in Europe in 2002.
Over the course of two days over 30 delegates, representing 13 member firms, dived into global economic and commercial trends and explored the impact on local markets. Of most significance were the discussions about cross-border M&A opportunities and how the Alliance’s reach could most effectively support each other.
The network delivers consistently high levels of cooperation and over the past five years member firms have completed 515 transactions with a combined value of $112 billion.
The next Terra Alliance conference will be hosted by Italian member firm, Banca Sella Group, in Milan in Spring 2023. Banca Sella is one of Italy’s largest banks.
About The Terra Alliance
Formed in 2002, The Terra Alliance consists of 13 investment banks and independent advisory firms with coverage of more than 40 countries and offices on six continents. It is a highly effective network, characterized by strong cooperation between the member firms, and a long track record of transaction success. The Alliance meets formally every six months to originate cross-border M&A and to enable members to share local knowledge and perspectives. More details can be found at http://www.terra-alliance.com
