Waterproofing firm acquired by US giant for £78m
Cheshire-based supplier of high-performance liquid waterproofing and coatings products Stirling Lloyd has been acquired by US giant GCP Applied Technologies for £78m.
Knutsford company Stirling generates annual sales of about £30m and is best known for its Eliminator, Integritank and Decseal brands.
The waterproofing membranes and coatings are used for the protection of infrastructure and buildings.
The company’s products and customer relationships will offer GCP additional selling channels in targeting specialized end-market applications such as for bridges, tunnels, car parks, and for asphalt repair.
“This acquisition expands our technology platform for infrastructure and repair/renovation, market segments that are growing at attractive rates,” said NYSE-listed GCP president and chief executive Gregory E Poling.
“Stirling Lloyd brings us complementary waterproofing systems; our global footprint will enable us to further increase penetration of these specialty products.”
Poling added: “This acquisition represents a great opportunity for us. The Stirling Lloyd team has many years of experience developing and selling products that fit well with GCP’s liquid waterproofing and building envelope products.”
The shareholders and management team at Stirling Lloyd were advised by the corporate finance and tax teams of Manchester-based accountancy and advisory firm, CLB Coopers and corporate law firm Turner Parkinson.
David Lloyd, managing director of Stirling Lloyd, said: “David Travis and his team at CLB Coopers are delighted with the result. The legal team from TP, headed by James Sheridan and David Easdown, worked closely with the team to ensure the deal was delivered in an extremely short timescale.”
The CLB Coopers team was led by Travis and supported by Simon Carruthers and Luke Brown from the firm’s corporate finance team alongside Rob Wardle and Sophie Huddleston from its corporate tax team.
Travis said: “This was an excellent transaction for both parties and one which brings great opportunities for GCP and the Stirling Lloyd Group going forward, both in the UK and across the world. We are delighted to deliver another successful outcome for one of our valued clients”.
Turner Parkinson advised the selling shareholders on the legal aspects of the transaction.
David Easdown, James Sheridan and David Hayes led the TP team alongside specialist colleagues.
The deal is the third inside 12 months where TP has advised on the sale of a North West-based chemical manufacturing business to a US corporate.
Easdown said: “Alongside our colleagues at CLB Coopers, we worked to deliver the deal for the exiting shareholders in an accelerated process driven by considerable market demand for the company.
“The devaluation in the pound over the last 12 months continues to provide opportunities for overseas corporates to acquire top quality UK assets at a significant discount in real terms. Stirling Lloyd is another North West success story and we are delighted to have helped deliver this deal for the shareholders.”
The transaction is expected to close by the end of June 2017, and is subject to local regulatory approvals.
Stirling Lloyd was the winner of the Catalyst Corporate Finance’s Chemicals and Coatings Fast 25, a report of the fastest growing chemicals and coatings manufacturing businesses in the UK, last week.
Ali Robertson, principal at Catalyst, said: “This deal is testament to the innovative products and quality service provided by Stirling Lloyd.
“It represents a fantastic deal for the shareholders whilst providing a real opportunity for GCP to leverage their global footprint and extend the customer base of the Stirling Lloyd products.
“As UK manufacturers continue to differentiate themselves through further innovation and new technologies, I am sure that there will be more deals in this space in the near future.”
