NorthEdge Capital has invested in environmental and industrial services specialist Future Industrial Services (FIS), backing the management buy-out from its Irish listed parent company, One51, at an equity value of GBP16 million.
Headquartered in Kirkby, Merseyside, FIS works with clients including government, major utility and multi-national companies to provide a range of cost-effective solutions to waste management and decontamination requirements.
Founded in 1999, the business operates a 75-strong fleet of specialist vehicles and owns a market leading share of articulated vacuum tankers able to carry a wide range of products. Operating from eight sites across the UK, from the Scottish Borders to the South Coast, the company has a workforce of over 275 employees and reported a turnover of GBP24 million in the 12 months to 31 December 2016.
The MBO was led by FIS CEO David Lusher and CFO Scott Dunning. NorthEdge’s investment will enable the company to invest in standalone, market-leading IT systems and environmental, health and safety compliance. The company also has plans to grow through increased investment in modern fleet, plant, equipment and machinery.
The deal was led by NorthEdge partner and head of new business Ray Stenton, with support from Jon Pickering, head of Manchester, George Potts, investment manager, and Greg Holmes, investment executive. Andy Ball and George Potts will sit on the board in a non-executive capacity.
Colin Stirling, former partner at Spirit Capital and non-executive director at Adler & Allan prior to its exit, has been appointed non-executive chairman.
Lusher says: “We are delighted to have concluded the MBO from One51 PLC with funding from NorthEdge, who have been very supportive throughout the process. All acquisitions made by the business over the last 12 months are now fully integrated and performing well and FIS can now offer services to industrial customers on a national scale. NorthEdge and management have a shared vision for the business over the coming years and with this renewed focus we will work tirelessly to ensure that FIS achieves its full potential.”
Ray Stenton, partner at NorthEdge Capital, adds: “FIS is recognised by its customers as a best-in-class service provider, delivering safety, quality and compliance in their work. We become stakeholders in FIS following an extensive capex program and look forward to further investing in flexible fleet and plant. David and Scott have managed the buy-out superbly and we are excited to support both of them and the wider team at FIS in delivering on their strategic ambitions.”
EY arranged the deal and provided management advice.
NorthEdge was advised by Adrian Reed, Tom Battersby and Matthew Furness at GCA Altium.
Buyside legal advice was provided by Paul Medlicott, Ollie Hincks, Rachael Norris and Becky Dove at Addleshaw Goddard.
Sellside legal advice was provided by Rebecca Grisewood at Gateley. Management legal advice was provided by Gregg Davison and Amie Norris at Pinsent Masons.