NVM Private Equity (NVM) has invested a further £3.5 million to create a new business that will combine two innovative providers of eco-friendly biological cleaning and waste treatment solutions. NVM’s existing portfolio company, Cleveland Biotech (CBio), will join forces with Biological Preparations (BP) to create the independent UK market leader in biological solutions for commercial cleaning and Food, Oil and Grease (FOG) management.
NVM originally invested £3 million in CBio’s management buy-out in 2013. This funding has been used alongside the further investment in a deal totalling £10.4 million to create the new combined entity. The enlarged company will offer the full range of biological cleaning and waste products to a wider customer base, and will effectively bring together two competitors to create a greater force in the market.
Stockton-on-Tees based CBio was established in 1992 to provide nitrifying bacteria to water treatment plants. The company is now a leader in applied environmental biotechnology, developing fermented bacteria for use in a range of biological products which naturally degrade a range of organic pollutants; including grease, fat, oil, diesel, uric acid and limescale. The business is focussed on Food, Oil and Grease (FOG) management and supplies its products to a wide range of Food Service Establishments (FSEs) such as supermarkets, restaurants, hotels and pubs as well as local authorities.
BP was formed in 2008 and specialises in the development of biotechnology solutions for a wide range of sectors including food and drink, water treatment, agricultural and cleaning services. The company formulates and blends its unique products using microbial, enzyme, plant extract, organic acid and biocide technology – all of which are supplied from its own facility in Caerphilly, Wales.
James Patterson, Managing Director of BP, said: “We are delighted to be partnering with CBio and NVM to create an enlarged business that will offer an extensive range of products and services to exploit the growing demand for biotechnology solutions for waste control and cleaning requirements.”
Ben Hoskyns, Managing Director of CBio, said: “There are obvious synergies between CBio and BP, especially as both businesses have been competitors. We have both built up a strong reputation in the biological treatment market, so bringing together our FOG solutions with BP’s complementary cleaning solutions will offer considerable benefits to both our existing and new customer bases.”
Mauro Biagioni, Partner of NVM Private Equity, said: “The CBio and BP management teams have over 60 years of combined experience in the biological treatment marketing. Both teams have built successful and competing businesses, so the partnership will give the new company a market leading position – especially in light of increasing pressures on companies that produce waste to actively demonstrate their green credentials.”
