NorthEdge backs £16m MBO of Future Industrial Services

Kenny Wastell
27 April 2017

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North-of-England-focused investor NorthEdge Capital has backed the management buyout of Future Industrial Services (FIS) from its corporate parent One51.

The deal gives the business, which focuses on waste management and decontamination, an equity valuation of £16m.

The GP said in a statement that it had become a stakeholder in the company following an "extensive capex program".

Capital for the transaction was drawn from NorthEdge Capital Fund II, which held a final close in March 2016 on its £300m hard-cap.

A spokesperson for NorthEdge told unquote" no debt was used to finance the deal. However, the GP will consider providing additional equity funding or sourcing debt financing to support future bolt-on acquisitions for the company.

Following the transaction, FIS will invest in its IT infrastructure and environmental, health and safety compliance. It will also invest in its fleet, plant, equipment and machinery.

Former Spirit Capital partner and Adler & Allan non-executive director Colin Stirling has been appointed non-executive chairperson of FIS. As part of the deal, NorthEdge partner Andy Ball and investment manager George Potts will take non-executive seats on the company's board.

Company
Founded in 1999 and headquartered in Kirkby, Merseyside, FIS is an industrial services group focusing on waste management and decontamination. Its clients include the UK government, in addition to private utility corporates.

FIS manages a fleet of 75 specialist vehicles and has a headcount of 275 across eight UK sites. The business generated a turnover of £24m in 2016, according to a statement.

People
NorthEdge Capital – Andy Ball (partner); Ray Stenton (head of new business); Jon Pickering (head of Manchester); George Potts (investment manager); Greg Holmes (investment executive).
Future Industrial Services – David Lusher (CEO); Scott Dunning (CFO).

Advisers
Equity – GCA Altium, Adrian Reed, Tom Battersby, Matthew Furness (M&A); EY, Mark Clephan, Mitchell Cox, Lauren Spours, Ed Gale (corporate finance, management due diligence); Addleshaw Goddard, Paul Medlicott, Ollie Hincks, Rachael Norris, Becky Dove (legal); Dow Schofield Watts, Nicola Meritt (financial due diligence); PMSI Consulting, David Crout (commercial due diligence); KPMG, Michael Lacey, Steve Heath (IT due diligence, tax); Lockton, Kevin Stout (insurance due diligence); ERM, Melanie Mann (environmental due diligence); Syngroup, Susanna Mitterer (operational due diligence).
Vendor – Gateley (legal).
Management – Pinsent Masons, Gregg Davison, Amie Norris (legal).