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”.

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.”

UK advisory firm, Quercus Corporate Finance has jointly advised the board of EnviroServ, South Africa’s largest waste management company on the signing of a binding agreement to be acquired by a consortium led by Suez.

The acquisition, which is subject to South African competition authorities’ approval, will enable the Suez led consortium to become a leading waste management player in South Africa.

EnviroServ is headquartered near Johannesburg, with regional facilities across South Africa. It is also active in Mozambique and Uganda. It was founded in 1979, and collects, treats, and disposes of general and hazardous waste, with treatment and disposal facilities across South Africa, Mozambique, and Uganda. It has a staff of 2,200 people and a turnover of nearly £70 million and is the only player in South Africa with full national coverage and a complete service offering. EnviroServ has an extensive customer base across a range of sectors including petrochemicals, manufacturing, metallurgical and mining sectors, as well as serving local authorities.

The acquisition will be made through a special purpose holding company, owned Suez 51%, RBH 24.5% and AIIM’s IDEAS Managed Fund 24.5%.

Mark Whelan, partner at Quercus, commented:

“We have been delighted to work with our co-advisors, Rand Merchant Bank, on this landmark transaction in the South African waste market. EnviroServ is a great company with well managed facilities and will provide the Suez led consortium with a sound entry into the waste market in South Africa and surrounding countries and its extensive experience and knowledge will help EnviroServ to further develop sustainable waste management solutions for its customers.”

The Quercus team, led by Mark Whelan and Neil Giles, advised the shareholders of BPR Group Europe Limited trading as Paper Round (“BPR”), one of the leading independent waste management businesses in the South East, on its acquisition of Reef Environmental Limited (“Reef”), an independent provider of waste and recycling services across East Sussex and Kent.

Financial details have not been disclosed.

Reef’s customer base and geographical footprint are highly complementary to that of BPR, providing a great opportunity for the combined business in the marketplace.  The enlarged business will also offer greater opportunities for the management and staff in both businesses in Sussex and beyond.

Mark Whelan, Quercus Partner said:

“I am delighted that we have successfully advised the shareholders of BPR on its acquisition of Reef.  There is an excellent operational and cultural fit between the two businesses, and this coupled with a strong strategic rationale for the acquisition bodes extremely well for the success of the enlarged group going forward.  We wish the combined team every success in the future.”

Bill Swan, Managing Director of BPR, added:

“We are delighted to have benefited from Quercus’ counsel throughout the acquisition process, their combination of in-depth waste sector knowledge and corporate transaction management facilitated a smooth acquisition process, allowing our management team to focus on the strategic and operational steps to successfully integrate Reef into the BPR family.”

Quercus is pleased to announce that it has advised the shareholders and management of Hunter Healthcare Resourcing Ltd, a fast-growing healthcare and life sciences recruitment business, on a management buy-out supported by Agathos Management LLP. The Quercus team was led by Ed Groome.

Hunter Healthcare is a London-headquartered, specialist healthcare recruitment business that places interim and permanent candidates into roles in the NHS, private healthcare and life science sectors. Hunter is known for its niche sector focus, high calibre candidates, depth of market knowledge, and the strength of its relationships with clients.

Hunter has developed an exceptional position in healthcare recruitment for non-clinical roles, with revenues growing to £44m in the current financial year. Agathos’s investment will facilitate the management buy-out of Hunter Healthcare and support the senior leadership team in delivering ambitious growth plans.

Charles Oakshett, Partner at Agathos, commented: “We are delighted to be partnering with Ben, Damian and the team at Hunter. The business has consistently delivered an excellent service to clients seeking to attract the best talent in the market, and as a result has achieved rapid growth. We see an opportunity for Hunter to build its core business with its existing clients and candidates whilst also breaking into new, growing markets.”

Discussing the outcome of the transaction, Ben James, CEO, said:

“We were in a fortunate position to have choice in who our private-equity partner could be, and it was clear early on that Agathos’s values, business ethics, operational experience and their genuine interest in our needs set them apart. We have worked incredibly hard to build Hunter to the business it has become, and we are hugely excited about what our exceptional team can deliver over the coming years as we pursue continued domestic and international growth along with personal choice for our employees and shareholders. We’re delighted to be joining forces with Charles, Will and the wider Agathos team.”

Ed Groome, leading the transaction for Quercus, commented:

“I’m delighted with the outcome of this process, for both the exiting shareholders and the management team who are going on to partner with Agathos for the next stage of their exciting growth journey. To echo Ben’s comments, we were pleased to have choice in the private equity sponsor to back Ben and the team, and I’m sure that Agathos will prove to be an excellent partner. It’s been a pleasure working with the Hunter team throughout the process and I wish them well for the next chapter.”

Commenting on Quercus’ role in the process, Gavin Johnstone, founder of Hunter Healthcare, said:

“We selected Quercus to advise us on this process due to their experience working with SMEs and particularly in the recruitment sector. Ed and the team guided us through the transaction process and his knowledge and experience were a key factor in ensuring a successful outcome, which all the shareholders are delighted with.”

The Quercus team, led by Andrew Clegg and Mark Winkler, advised the Board of Dri-Pak Limited (“Dri-Pak”) on the sale of the company to Finfenario Limited.

Headquartered in Ilkeston, Derbyshire, with manufacturing and packing operations in Manchester, Dri-Pak is a leading supplier of branded and retailer own brand cleaning and laundry products and the UK’s largest independent salt packer. Dri-Pak’s product portfolio includes table salt, dishwasher salt, soda crystals, white vinegar cleaner and liquid soap, which it sells into the UK and European retail sector.

With a 50-year heritage, Dri-Pak is a third-generation family business and Quercus has been working closely with the family since 2019 to formulate an exit strategy and prepare the business for sale. Following receipt of unsolicited approaches, through our extensive relationships we identified Finfenario as a logical buyer for the business and managed the sale process from start to finish.

Bruce Maxwell, Managing Director of Dri-Pak said:

 “My family and I are delighted that Dri-Pak has joined forces with the Finfenario team and we are confident that the business will thrive under their ownership.  The sale is the culmination of a two-year journey with Quercus who have guided us sensitively every step of the way. The quality of the advice and service we received throughout was a significant factor in a successful transaction and we are delighted with the outcome.”

Andrew Clegg, Partner at Quercus added:

 “To have been trusted by Bruce and his family to deliver a successful sale process after fifty years of family ownership has been a rare and satisfying privilege. Dri-Pak is a highly-respected British business with a reputation for producing high-quality products and exceptional customer service. With the injection of energy that comes from new ownership I look forward to seeing the company prosper in the coming years.”

The Quercus team, led by Andrew Clegg and Mark Winkler, advised the Board of CCL Compliance Limited (“CCL”) on the sale of the company to Waystone, a leading provider of institutional governance, risk and compliance services to the asset management industry. Waysotne is backed by mid-market Private Equity firm, MML.  The transaction was supported by CVC Credit Partners.

With offices in London and Dubai, CCL is an established and experienced provider of regulatory compliance services. The business was founded in 1988 by Ralph Lindeyer and has since developed a comprehensive range of compliance services which it provides to a blue-chip client base across the globe.

Headquartered in Dublin, Waystone is the worldwide leader in governance, risk and compliance, representing leading investment funds and managers globally. Partnering with institutional investors, investment funds and asset managers, the group builds, supports and protects investment structures and strategies worldwide. Waystone supports asset managers with more than $1tn in assets.

CCL is Waystone’s ninth acquisition and now forms part of a newly formed Compliance Services division. Whilst Waystone has traditionally offered compliance services to funds, this is the first time it has offered services to fund managers at a corporate level, vastly expanding its addressable market.