MML, 57 Stars invest GBP 20m in Natural World Products
MML Growth Capital Partners and 57 Stars have made an investment of around GBP 20m in Northern Ireland-headquartered organic waste recycling company Natural World Products (NWP).
The deal will see MML become the largest equity shareholder in the company, while all of the existing shareholders other than CEO Colm Warren will exit the business.
The GP is deploying equity via MML Growth Capital Partners Ireland II. The vehicle held a final close in March 2021 on EUR 135m and the fund makes investments of EUR 5m-EUR 15m, backing Irish SMEs through minority equity and debt investments. The fund has made three platform investments to date.
HSBC has provided debt to back the deal.
The announcement of MML Growth's investment in NWP comes shortly after the GP announced the sale of its stake in Sanos Bathrooms to the company's management, netting returns of around 3x money, as reported.
US-headquartered 57 Stars backs GPs focused on mid-market and emerging markets investments, investing in both private equity and venture capital strategies via partnerships, secondaries, co-investments, and structured transactions. Its core investment themes are healthcare, financial inclusion, clean energy and resource efficiency, affordable housing and education. The latest fund in the GP's strategy is the 2018-vintage 57 Stars Global Opportunity Fund 5.
Company
Natural World Products (NWP) is a recycling company that produces peat-free organic compost by diverting organic waste away from landfill disposal. The company supplies community projects and private individuals, as well as agricultural and leisure sector businesses.
Founded in 1989, NWP is based in Belfast and employs 55 staff. According to its latest publicly available accounts, the company posted 2019 revenues of GBP 15.5m and operating profit of GBP 3.3m, versus turnover of GBP 13.4m and operating profit of GBP 1.3m in 2018.
People
MML Growth Capital Partners – Neil McGowan (partner, co-head of investments); Shane Cooke, Chris Walsh (investment directors); Muireann MacAuliffe (investment analyst).
57 Stars – Bernard McGuire (managing director).
Natural World Products – Colm Warren (CEO).
Advisers
Equity – Tughans (legal); Crescent Capital (corporate finance); HNH (financial due diligence, tax); Roland Berger (commercial due diligence).
Vendor – EY (corporate finance); Mills Selig (legal).
More on Buyouts
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater
Main Capital’s Assessio to be sold to Pollen Street
Recruitment software company tripled in revenue under Main Capital’s ownership
Exponent divests ‘significant' stake in Meadow to Canadian investor
Since 2018, GP has diversified food ingredients company's focus beyond commodity dairy
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater