Clearwater International advises LDC on the MBO of Stuart Turner

Clearwater International has advised LDC on the MBO of leading water pump and pressure solutions business Stuart Turner, including raising a significant debt package to support the acquisition. Working capital facilities have been provided by RBS with acquisition debt from Barings.

Founded in 1906, with strong heritage in engineering excellence and product innovation, Stuart Turner has an established reputation for high-quality products for the commercial and domestic markets, including a patented solution for mains water pressure issues.

Stuart Turner is led by CEO Mark Williams and Financial Director Malcolm Harris, and employs over 100 people. The business has achieved significant growth over the past six years generating turnover over £22m (€24m) for the financial year ending September 2016.

Following LDC’s investment, Stuart Turner plans to accelerate its targeted acquisition strategy in the commercial pump sector and adjacent product categories. This follows the business’ acquisition of two leading UK pump manufacturers, TWS and Allan Aqua, in the last two years.

The Clearwater International team was led by Industrials Partner Constantine Biller, with support from debt advisory Partner Chris Smith, Directors Karen Edwards and Joe Dyke and Associate Steve McQuillan.

“The flow products market is experiencing strong M&A activity, with numerous independent companies being targeted by acquisitive corporates and private equity firms. Manufacturers of actuators, pumps and valves such as Stuart Turner demonstrate attractive features for investors including specialist engineering skills, ongoing production innovation and strong global distribution networks.”

Constantine Biller, Industrials Partner, Clearwater International

“With the support of LDC, Stuart Turner is in a great position for future growth led by a strong management team. The investment will enable the company to continue its successful growth strategy and ongoing development of innovative products.”

Chris Smith, Partner, Clearwater International

“LDC recognised the growth potential of the business and immediately bought into the existing buy & build acquisition strategy. Importantly, they also saw the opportunities presented by new product introductions and further geographical expansion.

“Partnering with a like-minded investor that not only has a strong track record in our sector, but is able to bring additional non-exec expertise on board, was extremely important to us. We’re looking forward to embarking on the next phase of our growth journey with LDC.”

Mark Williams, CEO, Stuart Turner

“Its recent acquisitions are a clear indicator of the management team’s ambition and with the company’s technical capabilities and strong customer base, Stuart Turner is well placed to further strengthen its market leading position both at home and overseas.”

Andy Lyndon, Head of LDC in the Midlands