Walker Morris advises on Adler & Allan buyout

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24/09/2014

Walker Morris has advised Spirit Capital and the management team at the oil and environmental services business, Adler & Allan, on its secondary buyout backed by private equity house LDC.

LDC has taken a significant minority stake in A&A with the backing of senior debt facilities from HSBC.  The investment will support the organic growth of the business and the development of its exiting products and services and deliver funds for opportunistic acquisitions.

The transaction provides an exit to Spirit Capital, which invested in the business in 2007 as Aberdeen Asset Manager Private Equity before its eventual spin out.

Based in Harrogate, with over 450 employees, A&A provides a range of business-critical environmental and industrial services across three core areas: Environmental Services providing nationwide emergency response, offering flood and oil spill disaster relief as well as project led industrial services; Technical Services offering innovative asset protection services and consultancy and Fuel Services, which provides consultancy, maintenance and support to companies with fuel installations.

Since 2005, A&A has made a number of bolt-on acquisitions to expand its proposition. Notably, Walker Morris advised the Group on its acquisitions of E&S Environmental Services in 2009 and AJ Bayliss Petroleum Engineers in 2011.

Debbie Jackson led the team at Walker Morris supported by Jo Stephenson from the Corporate Group and various specialists from across the firm.

Debbie Jackson commented:

“We are delighted to be involved with an investment such as this supported by an all Yorkshire advisory team.  A&A is a long standing client of the firm.  We have worked with the management team since 2007 and seen the business grow and prosper over these years.  The transaction provides an exit for Spirit at a time when the business expects record revenues in excess of £60 million for the current year ending Sept 14.  We are confident that this further investment from LDC will help to continue to drive the business forward.

“The current growth in the economy provides prime conditions for exits and, as a firm, we have noticed a significant upswing in the number of transactions advising management and private equity houses on sales, which we expect to continue into Q4.”

Mark Calvert, Managing Director at A&A, said:

“Since 2005, Adler & Allen has experienced a significant transformation and expanded to cover a range of integrated and vital environmental services to corporates.  The financial and strategic support from LDC will enable us to drive further investment into our product development and nationwide deport network as we look to capitalise on a resurgent industrial sector and economy and take our business forward.”

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