BGF sells Chemoxy stake to Eurazeo-backed Novacap

Kenny Wastell
04 July 2017

Tweet
Facebook
LinkedIn
Google plus
Send to

Business Growth Fund (BGF) has sold its minority stake in UK-based speciality chemicals manufacturer Chemoxy to Eurazeo and Ardian portfolio company Novacap.

BGF invested £10m for a minority stake in Chemoxy in February 2015. Chemoxy has invested in its manufacturing facilities and product development since the investment.

The deal comes 16 months after Eurazeo invested €160m to acquire a 67% stake in Novacap from Ardian. Following the acquisition by Eurazeo, which gave Novacap an enterprise value of €654m, Ardian retained an 18% stake in the business.

The transaction forms part of Novacap's ongoing international and acquisitive growth strategy. In May 2015, the group acquired German pharmaceuticals business CU Chemie Uetikon from Equistone Partners Europe.

Chemoxy's founders will retain a minority stake in the company following the latest deal.

Company
Headquartered in Middlesbrough, Chemoxy supplies low-toxicity solvents for use in paints, coatings and industrial and household cleaners. It also provides manufacturing services to clients from the oil & gas and chemicals industry. The business was spun out from Dow Chemicals in 2011 via a management buyout.

According to a statement issued by the vendor, more than 60% of the company's sales are generated from exports. The business generated a turnover of £46.2m in 2016, according to publicly available documents, down from £49m the previous year. It also operates from an additional site in Billingham, Teeside.

People
Business Growth Fund – Barry Jackson (investor).
Chemoxy – Ian Stark (CEO); Martyn Bainbridge (chief operating officer).

Advisers
Vendor – UNW, Paul Kaiser, James Allsopp (corporate finance); Bond Dickinson, Nigel Williams (legal).