Industrials sector comment – June 2013

Date

Clearwater’s Industrial Team is delighted to announce our latest transaction in the industrial sector.

Food Industry technical (FIT) is a leader in the area of kitchen energy management control, combining airflow measurement, data logging through remote access, energy monitoring and energy control. FIT uses innovative systems to offer a number of solutions to customers which enable them to improve efficiency in their kitchen, monitor their energy usage, reduce equipment failure and meet environmental targets. The company’s patented Cheetah system has been installed in over 2000 locations throughout the UK and Europe and counts blue chip companies such as Whitbread, Tesco and Sainsbury’s as clients.

Clearwater assisted ex CEO of Everest Limited, Simon Jarman, in securing backing for a buy-in management buy-out and was successful in bringing FF&P Private Equity, the UK-based private equity business of Fleming Family & Partner on board. FF&P backed the transaction through Efficient Energy Management Group, a business majority owned by FF&P. Simon Jarman along with Efficient Energy Management Group now intend to grow the company by capitalising on the demand for energy efficient commercial kitchens.

Deals

Praxair Inc has acquired Dominion Gas Ltd, an Aberdeen-based oilfield services company which supplies specialist gases, gas cylinders, chemicals, tanks and related services to offshore oil and gas customers in more than 20 countries. The transaction provides an exit for Graphite Capital Management LLP with a 2.3 times return on investment.

Enegi Oil plc has entered into a formal joint-venture with Advanced Buoy Technology Limited, a proprietor of technology which utilises unmanned buoys to access offshore reserves to depths of 600ft. The JV brings together Enegi’s operational expertise with ABT’s unique buoy solution enabling each company to take advantage of the opportunity to provide an economic solution to marginal fields.

Waterlogic plc has acquired Cool Clear Water Group Pty Ltd, a leading supplier of POU drinking water purification and dispensing systems in Australia. The acquisition marks Waterlogic’s entry in to the Australian water cooler market.

John Wood Group plc has acquired Intetech Limited, a niche provider of software and engineering consultancy services for well integrity and corrosion management to the global oil and gas market. The acquisition strengthens Wood Group’s business critical software portfolio and fits alongside the group’s consultancy services teams.

SIG plc has acquired domestic peers SK (Sales) Ltd, a supplier to the HVAC industry and United Roofing Products Ltd, a manufacturer of metal roofing sheets. The acquisitions will further strengthen SIG’s distribution network.

Rolls-Royce plc has acquired Hyper-Therm High Temperature Composites Inc, a producer of state-of-the-art composite materials, including ceramic matric composites (CMCs), engineered coatings and thermal-structural components. The application of CMC’s in the aerospace sector will enable Rolls Royce’ customers to improve operational performance and energy management by revolutionising the weight and performance of engines.

Bunzl plc has acquired three businesses from the Industrial & Safety division of Jeminex Limited in Australia. The acquisition significantly increases the size of Bunzl’s business in Australasia and extends their operations there into the safety market whilst enabling the company to cross-sell existing Bunzl products to Jeminex’s customer base.

Tyman plc has agreed to acquire Truth Hardware Inc, a North American window and door hardware manufacture, from Melrose Industries plc. The acquisition will significantly enhance Tyman’s position in the north American door and window component market.

Private Equity firm FF&P Private Equity Ltd has backed the buy-in management buy-out of FIFIT Ltd, a specialist energy efficiency business which designs and installs energy saving solutions for a large number of blue chip customers. FF&P will work with the company to expand the customer base, diversify the product range and develop international markets.

Grainger Sawmills Ltd and Palfab Ltd, the independent Irish timber processing companies have agreed a merger to form GP Wood Ltd. The merger will create one of Ireland’s largest most diversified timber processing companies and will mean an enhanced product range, enhanced services to customers, improvements in capacity utilisation and more efficient use of logistics.

Messer Cutting Systems GmbH has acquired Monitor Coatings Ltd, an industrial coatings specialist which provides high quality coatings for customers in a range of industries, such as aerospace, oil and gas exploration, steel and alternative energy generation. Being part of a multi-national manufacturing group will enable Monitor Coatings to expand quickly.

Mott MacDonald Group Limited is to acquire PD Naidoo & Associates Pty Ltd, a Johannesburg-based engineering specialist. The new Mott MacDonald PDNA business will be an 800-person strong entity and will provide a much extended, multi-sector capability for the entire sub-saharan region.

Kromek Limited has acquired Endicott Interconnect Detection and Imaging systems (EIDIS), a division of Endicott Interconnect Technologies Inc. The acquisition puts Kromek Group in a strong position in the spectral radiation detection market by having the widest breadth of technology for detector materials production and manufacturing capability.

Safran SA is to acquire Rolls-Royce’s 50% share in their joint RTM322 helicopter engine programme for EUR 293m. Upon closing, Turbomeca (Safran’s leading helicopter engine business) will assume global responsibility for the design, production, product support and services for the RTM322 engine.

Parker Drilling Company has acquired International Tubular Services Ltd, an international rental tools and well services company. The acquisition is in line with Parker’s strategic goal to offer additional integrated products, services and expertise to international energy and exploration operators and drilling contractors.

RPS Group plc has acquired Knowledge Reservoir Group Inc, a reservoir engineering and geosciences consulting firm which operates primarily in the US, but also undertakes projects in many other parts of the world. Knowledge Reservoir’s activities will be merged with the international activities of RPS Energy and the transaction is expected to make a full contribution in 2014.

Mott MacDonald group Limited has acquired Habtec Engenharia Ambiental Ltda, a Brazilian environmental engineering consultancy. The acquisition is part of Mott MacDonald’s strategy to create a regional base in Brazil from where it can expand across South America.

Hydrodec Group plc has entered in to a strategic partnership with G&S Technologies Inc, a leading New Jersey-based electricity transformer recovery services group. The deal, which involves the creation of a new entity called Hydrodec of North America LLC, will create one of the largest handlers and processors of waste and polychlorinated biphenyl (PCB) contaminated transformer oil in North America and will enable Hydrodec and G&S to accelerate their growth in the world’s biggest energy market.

Vision Capital LLP has backed the management buy-out of CPL Industries Ltd, a UK manufacturer of smokeless solid fuels. The transaction provides an exit for Royal Bank of Scotland and two former managers of the company.

Trelleborg AB has acquired Ambler Technologies Ltd, a developer and producer of composite materials that create strictly specified buoyancy and insulation properties in applications used primarily in deep-sea environments. The acquisition provides Trelleborg with access to cutting-edge expertise and expanded production capacity of strategically important components and also strengthens Trelleborg’s position in oil and gas exploration and extraction, particularly in buoyancy modules for Remotely Operated Vehicles (ROVs).

Sovereign Partners Ltd is to acquire Cap-It-All Ltd, a supplier of disposable lids for the foodservice sector and a subsidiary of Goodlife Eco-Friendly Ltd. The combination of Cap-It-All with Sovereign is a strategic fit and will expand Sovereign’s range of quality products and custom reach.