LDC, a UK mid-market private equity firm, has fully exited its investment in Cheshire Salt Holdings, the parent company of Middlewich-based British Salt, in a sale to Brunner Mond.
The transaction remains subject to regulatory approval, which is expected in January.
Brunner Mond, which is wholly owned by Tata Chemicals, part of the Tata group of companies, is the UK’s only soda ash and sodium bicarbonate producer. Its main facility is in Northwich, Cheshire.
British Salt, which produces approximately half of the UK’s pure salt, markets a variety of products for a range of UK and overseas markets, from food processing to chemicals production to de-icing products. It employs 125 people at its facility in Middlewich.
LDC backed the original management buyout of British Salt in 2007, acquiring the business from its US parent company. In 2009, British Salt disposed of its natural gas storage facilities to EDF Energy for the development of a fast-cycle gas storage facility, which is currently under development.
LDC director Carl Wormald, who with investment manager Jon Pickering led LDC’s original investment and subsequent exit, says: “This is an optimum outcome for all parties. The acquisition represents a highly strategic move by Brunner Mond, providing an important presence in several growth markets across Europe. It also provides an excellent opportunity for British Salt’s customers and employees, becoming part of a leading European manufacturing group and ultimately one of the world’s largest and most geographically diversified chemical groups with a worldwide reputation for innovation, quality of customer service and commitment to sustainability.”
Bill Thompson, chief executive officer of British Salt, says: “Given the strategic alignment of our businesses, as well as the significant combined expertise and resources, this acquisition provides a major opportunity to achieve growth in our chosen markets and to add value to our existing customers. We would also like to thank LDC for its continued support over the last three years – at a strategic, operational and financial level – which has helped further develop a business with an excellent reputation and pedigree for quality manufacturing and customer service. We now look forward to the next chapter of our growth with Brunner Mond.”
Martin Ashcroft, managing director of Brunner Mond, adds: “This acquisition represents an excellent opportunity for Brunner Mond to leverage its manufacturing and processing expertise to accelerate the growth of British Salt, which has already achieved an enviable reputation in several fast-growing and non-cyclical markets. This provides further opportunities for both organisations’ customers in markets around the world.”
