Sentio Partners has advised CBPE Capital on its acquisition of Aquaspersions Limited and Aquaspersions (M) Sdn. Bhd (together “Aquaspersions” or “the Business”) from the founding family shareholders. CBPE is investing alongside the management team (led by CEO Alan Bewsher) who were also advised by Sentio Partners.
Aquaspersions manufactures specialist chemicals for the global polymer industry. Its products allow for the dispersion of additives into polymer materials such as rubber, latex, adhesives, coatings and plastics. These additives are crucial to the manufacturing process, and enable end products to attain enhanced properties such as increased durability.
The business has a well-earned reputation for quality, consistency and product innovation. Its customer-focussed approach is reflected in its long-term relationships and impressive 10% per annum revenue growth over the last 13 years. The Business reported revenue of £35m for the year to December 2020.
Aquaspersions’ products are all water-based, and as such are more environmentally friendly than the alternative organic solvent-based dispersions. The business is well positioned to take advantage of the long-term industry trend towards the use of water-based additives.
With a successful track-record of new product innovation, Aquaspersions’ latest development is a novel range of biodegradable coatings and adhesives, which take advantage of the business’ expertise in polymer science and proprietary manufacturing processes.
CBPE is investing alongside management in order to support the continued growth of the business. The business will continue to operate from its existing facilities in Halifax (England) and Kuala Lumpur (Malaysia).
Alan Bewsher, CEO of Aquaspersions, said: “We are delighted to lead the management buyout of Aquaspersions. We will continue to focus on supporting our customers and on developing our product range to meet the growing demand for water-based dispersions and emulsions. We chose CBPE as our partner based on a strong working relationship together with their chemicals industry experience and network”.
John O’Gara, Dave Irwin and Rory Wade from Sentio Partners acted as the lead corporate finance advisers to CPBPE Capital and to Management.
CBPE Capital was also advised by Spectrum (debt advisory), Reed Smith (legals), PwC (financial, tax, structuring), Cogency (commercial) and Gallaghers (insurance). HSBC provided leverage finance to support the transaction. Management was advised by Squire Patton Boggs.
The terms of the transactions have not been disclosed.
CBPE Capital is a leading UK private equity firm with ten funds raised over more than 30 years. CBPE pursues a disciplined and consistent investment strategy, targeting buyouts and development capital investments in UK head-quartered businesses with enterprise values between £25 million and £150 million.
The investment in Aquaspersions is the first investment in CBPE Capital Fund X, which closed at the hard cap of £561m in November 2020.
