Family-run St Helens oils business reaches final chapter with disposals

From left: John Longstaff Andrew Fielder, Mark Lord, Janis Hartshorne (Aztec), Matthew Chenery, Katie Ash
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Industrial lubrication specialist Aztec Oils has completed the acquisition of the lubricant, pre-packaged fuel and contract packing business of Multispec Limited, formerly Caldo Oils, for an undisclosed sum.

Derbyshire based Aztec Oils manufactures and distributes high performance lubricants to a wide range of industrial sectors and says it is fully committed to building long term relationships with its ever-growing number of world-wide customers.

The terms of the acquisition will see Aztec procure Caldo’s manufacturing facilities in St Helens, along with distribution operations in Newton Abbot, Devon, and Rhuddlan in North Wales.

In a separate deal, Caldo’s bulk fuels business supplying DERV, petrol, heating oils for home and industry, gas oil and tractor diesel for farms and off-road machinery, and kerosene for oil-fired ovens, heaters and lamps has also been sold to Nantwich-based NWF, along with the Caldo trading name.

Caldo Oils was founded in 1922 by five brothers – Austin, George, John, Leo and Walter Scott. It was originaly named the Caledonian Oil Company before changing its name in 1951.

The combined revenues of Caldo’s bulk fuels and manufacturing businesses were £8.1m in the year to June 2019. They employ 29 staff.

Nigel Barratt and Ryan Niblock of Hurst Corporate Finance and Liz Gallagher and James Hamilton of Hurst’s tax team advised Caldo Oils owners Michael and Tim Scott – grandsons of co-founder Walter – on the transactions.

Paul Johnson, Rachel Clarkson and Hollie Walsh of law firm Ward Hadaway’s Manchester office, provided legal advice.

Ryan Niblock said: “Caldo Oils has a great history, a strong reputation for quality of service and reliability, and has been a long-standing client of our firm. It was a pleasure to advise on these deals which have provided an exit for the owners.”

Michael Scott said: “As a third-generation family-run business, I have had the opportunity to see the business evolve and both Tim and I feel these deals bring a very nice end to our journey with Caldo. We are confident that Caldo and Multispec have an exciting future with NWF and Aztec, respectively.”

John Longstaff and John Warner from BHP Corporate Finance acted as lead advisors to Aztec Oils, with tax advice being provided by Mark Cooper and Katherine Taylor.

Andrew Fielder and Katie Ash from Banner Jones provided legal advice. Funding for the transaction was delivered by Matthew Chenery from Barclays Bank.

Mark Lord, Aztec managing director, said: “This venture really excites us. It gives us a great opportunity to develop our retail packaged range, offering both Aztec’s branded products, whilst at the same time growing our private label offering.”

Ryan Niblock

John Longstaff, director at BHP Corporate Finance, said: “We are delighted to have advised Aztec on this strategic transaction. Caldo is a perfect fit and I am confident that Mark and the team at Aztec will maximise the benefit of the opportunities afforded to the enlarged group.”

Andrew Fielder, director at Banner Jones, added: “This acquisition will enable Aztec to further expand its offering to existing customers, as well as reach into new markets, with new products and an increasingly impressive geographic footprint.

“We are pleased to have been able to support Aztec with its legal requirements throughout the transaction, and wish the company every luck for the future of the business as it continues to grow.”

Matthew Chenery at Barclays said: “It’s great to see Aztec Oils going from strength to strength, demonstrating a real thirst for expansion and growth.

“We’re thrilled to be supporting this latest exciting acquisition which sets them up well to exploit future market opportunities.”