Clearwater International’s Midlands Engine continues to power the business

Gareth Iley, Partner in Clearwater International’s Birmingham office and International Head of Consumer outlines some of the key deal highlights this year in the Midlands.

Clearwater International was founded outside of London, with the majority of our team located outside of the area. We have a desire to see a regional thriving economy that creates jobs, provides opportunity, creates wealth and generates tax revenues – to fund public services and investment in infrastructure.

There is much debate about a London-centric economy and the need to rebalance jobs and wealth in the regions. Ensuring there are skilled jobs in corporate finance advisory, private equity investment management, banking, legal services, tax and accounting services in the regions plays an important part in balancing the economy. So how is the regional deal market and in particular how is the Midlands market performing?

So far 2019 is proving to be another good year with our Midlands team originating a number of high quality deals in the Midlands. The team also advises on deals across the UK which generates fees and income into the region.

Recent completed transactions show the strength of the Midlands market and the important role deals play in the wider economy.

In August, Clearwater completed the £50m management buy-out of the corporate clothing division of US-based Tailored Brands, Inc (NYSE:TLRD). Clearwater advised the management team helping them to negotiate the deal with Tailored Brands, raise the equity finance from LDC in the Midlands and debt finance from PNC.

This summer also saw the completion of the sale of Bridge Farms to Sundial Growers Inc, a Canadian business. Bridge Farms is one of the UK’s leading growers of ornamental plants, flowers and herbs and was acquired by Sundial for its growing capacity. As well as continuing to support its current activities, Sundial intend to use the facilities to grow high quality CBD to feed the increasing demand for CBD products in the UK and Europe. The transaction provided an exit for the Midlands office of North Edge private equity who invested in Bridge Farms in 2017.

Earlier in the year we advised the shareholders of Pallet-Track, a leading palletised logistics solutions provider on its sale to private equity investor TPA Capital. Pallet-Track has been a great Midlands success and was listed in the Sunday Times list of the 100 fastest growing businesses.

These, and other deals completed by our team across the Midlands, shows the continued strength of Midlands businesses and the important role that private equity plays in providing liquidity to shareholders and helping to grow value. The Midlands, has great opportunities – but to end on a political note, would benefit from a resolution to the Brexit impasse and improved connectivity through HS2 and other transport investment initiatives.