The Promanex Group, the ambitious industrial support services company based in Hurley, near Tamworth, has completed its first major acquisition: the £3million purchase of Jefco Services which was negotiated by the Nottingham office of corporate finance house Clearwater Corporate Finance.
Promanex instructed Clearwater Corporate Finance to investigate the possible purchase of Jefco Services, of Immingham, Lincs., as it was a provider of similar specialist support services to the petrochemical sector, including Conoco and Total/Fina/Elf. The resulting negotiations not only led to the £3million deal, but also to an £8million investment in the group, structured by Sovereign Capital. Bank of Scotland provided £4million debt funding.
The acquisition will enable Promanex to broaden its customer base in a closely related sector and develop additional specialist activities such as industrial cleaning in hazardous environments.
Robert Britton, of Clearwater Corporate Finance, says: “The Promanex team, who have been clients of ours since their successful management buy-out in 1999, turned to us when they decided the time had come to speed their growth by acquisition. Having confirmed that Jefco Services was a suitable vehicle, we were extremely pleased that Sovereign Capital and Bank of Scotland were keen to lend their support while we carried out all the acquisition negotiations.”
Mark Dixon, Managing Director at Promanex, comments: “The acquisition of Jefco and the securing of further funds provides us with the opportunity to expand the business, further enhance the breadth of our product offering and begin to augment organic growth with selective acquisitions.
“By joining with Jefco we will gain the additional sector experience and enhanced presence needed to achieve dominance in this high growth market.”