Lyceum portfolio company acquires Drain Control

The £3-5m capital injection was made through the vehicle Lyceum Capital Fund II, which closed on £255m in 2008, and from UKDN's balance sheet.

Drain Control is the second add-on business UKDN has purchased in the last two months following the acquisition of Slough-based Waterflow Holdings in October. Both deals were sourced by Lyceum's origination team led by Simon Hitchcock and Martin Wygas. The add-on marks Lyceum's 14th deal this year.

Details of the financial transaction are undisclosed but UKDN has so far invested more than £15m in its market consolidation strategy. The deal expands UKDN's market share and reinforces its presence in south-east England. UKDN now has a nationwide network of 18 depots and 500 employees.

Lyceum acquired a minority stake in UKDN for an undisclosed sum in January 2010 with the intention of broadening the company's services through a consolidation strategy. Since Lyceum's capital injection, the company has expanded the drainage services it offers to the insurance, domestic, commercial and public sectors and more than doubled its turnover to £55m. Additional acquisitions are planned.

Company
Established 20 years ago, the Kent-based company Drain Control provides a range of drainage and plumbing services to a client base that includes McDonalds and Debenhams. Drain Control currently has 50 employees who will join the UKDN team following the acquisition.

People
Simon Hitchcock, partner at Lyceum and non-executive director of UKDN, led the deal for Lyceum alongside investment manager Martin Wygas. Brian Cowland is Drain Control's founder and decided to sell the company to focus on other sectors, including renewable energy. Bill Stearns is managing director.

Advisers
Equity – BDO Birmingham (Financial due diligence), Cobbetts Birmingham (Legal).

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• Topics
• UK / Ireland
• Expansion
• Support services
• Acquisition finance
• United Kingdom
• Horizon Capital (formerly Lyceum Capital)