Berry Smith LLP was delighted to act in a deal to create a new business, combining two providers of eco-friendly biological cleaning and waste treatment services, one of which is based in Wales.
Stockton-based Cleveland Biotech (CBio), will join forces with Biological Preparations (BP), headquartered in Caerphilly. NVM, a private equity firm, originally invested £3m in CBio’s management buyout in 2013, which has been used alongside the further investment in a deal totalling £10.4m to create the new combined entity.
The enlarged company will offer the full range of biological cleaning and waste products to a wider customer base, and will effectively bring together two competitors to create a greater force in the market.
James Patterson, managing director of BP, said: “We are delighted to be partnering with CBio and NVM to create an enlarged business that will offer an extensive range of products and services to exploit the growing demand for biotechnology solutions for waste control and cleaning requirements.”
Ben Hoskyns, managing director of CBio, added: “There are obvious synergies between CBio and BP, especially as both businesses have been competitors.
“We have both built up a strong reputation in the biological treatment market, so bringing together our FOG solutions with BP’s complementary cleaning services will offer considerable benefits to both our existing and new customer bases.”
BP was formed in 2008 and specialises in the development of biotechnology services for a wide range of sectors including food and drink, water treatment, agricultural and cleaning services, all of which are supplied from its own facility in Caerphilly.
CBio was established in 1992 to provide nitrifying bacteria to water treatment plants. The business is focussed on food, oil and grease management and supplies its products to a wide range of food service establishments including supermarkets, restaurants, hotels and pubs as well as local authorities.
Mauro Biagioni, partner of NVM Private Equity, said: “Both teams have built successful and competing businesses, so the partnership will give the new company a market leading position – especially in light of increasing pressures on companies that produce waste to actively demonstrate their green credentials.”
Berry Smith LLP acted for Biological Preparations in the deal, with the team being led by Andrew Bound, assisted by Paul Evans.