Lloyds backs acquisition of Swarfega maker

LLOYDS TSB Corporate Markets (LCM), part of Lloyds Banking Group, has supported Charterhouse Capital Partners’ acquisition of Midland-based skin care specialist Deb Group from Barclays Private Equity.
 
Established in 1941, Deb Group is one of the world’s leading away-from-home skincare companies, manufacturing and selling a wide range of soap and sanitiser products via its own proprietary delivery system, including the world famous Swarfega heavy duty cleanser.  

LCM said that with significant market positions in the UK, USA, Canada and France, the Deb Group was well-placed to benefit from the ever growing global hand hygiene and sanitation market.

Demand being partly driven by increased levels of public awareness of these issues, said the banking group.

Deb Group services major corporate customers such as Shell, ICI, Nestle, Coca Cola and the NHS and estimates that more than 40 million people around the world use its products every day.

Led by chief executive Bryan Anderson, Deb Group’s management team has bought the company in a transaction backed by Charterhouse Capital Partners, one of Europe’s leading private equity firms.

The acquisition finance team of Lloyds TSB Corporate Markets acted as joint mandated lead arranger and sole underwriter to provide a £130m senior debt package along with a £20m acquisition facility and £10m revolving credit facility, to support the business’ ongoing growth and consolidation strategy.
 
Derby-based Deb Group has recently invested in a new £18m manufacturing and warehousing facility in the UK to support distribution across Europe and plans to make further inroads into the US market.

Martin Cordey, director at Lloyds TSB Corporate Markets acquisition finance in the Midlands, said: “This was a great opportunity to support a hugely successful customer of the bank and a company which has further cemented its market leading position, despite the downturn.
 
“Deb Group’s strong management team has demonstrated the ability to continuously develop the business in recent years and we look forward to supporting both the firm and Charterhouse in the future.”

He said the level of deal activity so far this year provided further evidence that equity remained available for the right investments.

“This local transaction follows last month’s Primary-backed £35m buyout of Amtech Group, which our Midlands team supported along with a selection of local advisors,” he added.