Private equity company Bluewater has sold px Group (px), having transformed the business during its five years of ownership to a market leader operating energy and energy transition assets throughout the UK.
Bluewater has overseen 27 per cent average annual growth, a near trebling of turnover, highly cash generative operations, and a seven-fold increase in EBITDA, from circa GBP2 million the year before acquisition to over GBP15 million in 2021.
Graeme Sword, Founding Partner at Bluewater, says: “I am pleased that this growth has been achieved during one of the most challenging economic climates in memory, impacted by the Coronavirus pandemic. We implemented a diversification of contracted revenue streams and expertise at the company, which helped it to weather the storm. I’m delighted it has been a successful exit in line with our targets.”
Bluewater, alongside the management team and Chairman Chris Picotte, acquired px in 2016 through its industry relationships and prior track record of successful investments in similar companies. There was an excellent fit between the px business strategy and Bluewater’s industry experience and investment model. Management was drawn to Bluewater given its deep industry relationships and prior track record scaling similar companies. With its domain expertise, Bluewater has been the driving force behind the significant growth at px. The company’s operated third-party sites have increased from two plants in Teesside to eight sites across the UK, making px responsible for 30 per cent of the country’s natural gas demand – an important bridge fuel in the country’s efforts to decarbonise and cut carbon emissions by 78 per cent by 2035.
In 2018, Bluewater led the complex carve-out acquisition of Saltend Chemicals Park from BP, transforming px into the sole owner and operator of the 370-acre industrial center. Saltend has since become the home of Equinor’s H2H Saltend, a landmark project that will create one of the UK’s first blue hydrogen plants and the world’s first decarbonised chemicals park. Saltend has also attracted new site tenants such as Pensana, which support the renewables industry. In addition, px is playing a critical role in several carbon capture & sequestration and hydrogen projects, including Scotland’s Acorn and Net Zero Teesside.
Bluewater made significant investments to build out the px executive team, bringing Geoff Holmes on board to reinforce the growth mindset, whilst maintaining a culture of operational and commercial excellence. Together with management, Bluewater supported the acquisitions of Camm-Pro and NRG Well Management, expanding services offerings across engineering and project management solutions to clients across the energy industry. Despite the global COVID-19 pandemic and lockdowns, px and Bluewater delivered EBITDA growth of more than 15% this year, demonstrating resilience and the critical nature of the services, and secured a long-term capital structure that looks beyond the pandemic.
Geoff Holmes, CEO of px Group, says: “From a company perspective, working with Bluewater has really demonstrated the advantages of private equity. We can move fast and take a longer-term view, without being fixated on quarterly results. The Bluewater team provided invaluable strategic oversight, sector understanding and support throughout our journey. px is now in great shape and well-positioned for future growth across energy, industrials, and the energy transition.”
Sword adds: “It has been a pleasure to partner up with Chris Picotte and px’s dedicated management team to develop the company and provide it with all the necessary tools for growth and strategic development. The results perfectly demonstrate that our buy-and-build strategy, our knowledge of the entire energy sector, and our extensive network of contacts can create value for investors and build business resilience. I am confident that px will continue to be successful under its new ownership and we wish the new shareholders, management and px employees every success in the future.”
