Clearwater International advises Warwick International on £129m MBO

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Speciality chemicals company Warwick International has undergone a £129 million management buy-out backed by Close Brothers Private Equity.

Clearwater International advised Warwick’s management team on the acquisition of the business from parent company, Sequa Corporation of the USA. The deal was backed by £80m of debt coming from RBS, HSBC, Barclays and Lloyds in a club deal.

Based in Mostyn, North Wales, Warwick International is the global market leader in the manufacture and supply of certain speciality chemicals used by all the leading laundry detergent manufacturers across their suite of high street laundry products. The company also has chemical distribution companies in Spain, France, Italy, Portugal and Malaysia as well as offices in Latin America and the Asia-Pacific region serving the coatings, inks, resins, plastics, petrochemical, refractory and personal care product sectors.

The Clearwater International team was led by partner Philip Nuttall and included Nick Holder and Nick Horrocks. Philip Nuttall said: “Clearwater International was called in by the management team to advise on the MBO and find an appropriate equity partner. The deal will allow Sequa to focus on its core business while providing Warwick access to a new source of investment to support its future growth.

“The chemicals sector is a specialist area for Clearwater International. This latest deal strengthens our track record, which also includes advising the international chemical group Solvay on the €200 million sale of its Warrington-based Caprolactones business to the Swedish company Perstorp AB in October 2007.”