Wastewater firm MBO is Deal of the Month
THE MBO of the West Midlands-based municipal arm of Canadian-listed group Ovivo has been selected as our Deal of the Month for March.
It was acquired in a management buy-out advised and funded out of Birmingham.
The municipal arm, based in West Bromwich, is involved in the supply, installation and maintenance of equipment and treatment processes in the municipal water and wastewater industries. The business employs around 70 staff, with a turnover of £13m.
Having left the Ovivo brand, the deal will now see the company trade under the name Jacopa. The new company will continue its focus on the UK and Ireland wastewater sectors, offering a variety of brands, including Copa, Jones+Attwood, Aquator, Tomkinson and MBR Technology.
The management buyout will see the business being led by well-known industry figure Alex Lloyd. Previously vice president at Ovivo’s UK municipal arm, Lloyd now takes on the role of managing director at Jacopa.
The terms of the deal were not disclosed.
Birmingham-based advisory firm, Clearwater International, led by partner Rob Britton and associate Mark Gillingham, advised Ovivo’s senior management team on the deal.
Clearwater International has also invested in the management buyout with its own funds.
The transaction also involved a number of other Birmingham firms, with Gateleys advising the management team and Paul Edmeades, of Shawbrook Business Credit providing the funding. Law firm Irwin Mitchell advised Shawbrook.
Alex Lloyd, managing director of Jacopa, said: “Jacopa is an exciting development for the UK municipal wastewater sector and will provide a comprehensive range of market-leading processes and products from a single well respected source, and which have been proven over many years to deliver on exacting customer requirements.”
Explaining the Deal of the Month choice, TheBusinessDesk.com editor Andy Coyne said: “Whilst is always nice to know the financial details of a deal, sometimes the concept itself is more important.
“There are still too few MBOs happening which is a real shame because energised management teams pushing a business on to new heights are crucial to the economic growth of the region.
“When they don’t happen those management teams are frustrated and their abilities are wasted.
“This Jacopa deal is a perfect example of unleashing that talent and energy and the future looks very bright for the company.
“The fact so many local advisers were involved in the deal is an added bonus.”
Read about all of March’s deals here.
