Inflexion invests in £11m-turnover agricultural testing firm

Cawood Scientific, a provider of analytical laboratory testing services into the arable, livestock and environmental sectors, has undergone a secondary management buyout, backed by mid market private equity house Inflexion.

The undisclosed investment was led by Carl Wormald, based at Inflexion’s Manchester office, and it marks an exit for NVM Private Equity after just over six years.

Founded 25 years ago and headquartered in Berkshire, Cawood has around 170 employees working in four laboratories in Berkshire, Yorkshire, Shropshire and Norfolk.

Latest accounts show the company had a turnover of £10.8m and pre-tax profits of £1.1m for the year to the end of March 2016.

Cawood has positioned itself at the forefront of developments in the agricultural sector as testing and data analytics play a key role in quality control and the sustainability of food production and as agricultural efficiency and food quality are increasingly part of the political agenda.

In December 2010, managing director Nigel Patrick and operations director Linda Radnor undertook a management buy-out, supported by NVM Private Equity.

Since then, Lord Curry of Kirkharle joined as chairman and the company has continued to develop its laboratory capabilities and established its veterinary diagnostics business.

Patrick and Radnor said: “With a chairman of the calibre of Lord Curry of Kirkharle and the backing of Inflexion we firmly believe the company is extremely well placed to serve and grow within the agri-foods market in which we operate.”

Peter Hodson, investment partner at NVM, said: “We are delighted with our investment and successful sale of Cawood Scientific and feel the business is now well placed for its next phase of growth under Inflexion’s ownership. It has been a pleasure working with Nigel, Linda and Lord Curry and we look forward to watching its continued progress and wish them every success for the future.”

GCA Altium managing director Simon Lord advised the company on the sale, supported by director Dominic Orsini and associate Tom Battersby.

Weightmans and Osborne Clarke provided sell-side and management legal advice, while RSM provided management with financial and tax advice. Advisors to Inflexion included Addleshaw Goddard (legal),

Strata Partners (corporate finance), BDO (financial due diligence), PWC (tax) and Roland Berger (commercial).