Peterborough based Hydromarque is a leading distributor and supplier of water pumps and spare parts to the food, wastewater, fuel and agricultural industries.
With a well-established and strong management team the Directors wanted to secure the future of the business and an exit plan through a management buy in. In this particular scenario the management buy in saw BCF Equity Partners take a controlling stake in the Hydromarque group but with the existing shareholders and management team remaining in place.
Adam Aisthorpe, Corporate Solicitor and Managing Director of Streets Law, the dedicated and standalone legal services practice of Streets Chartered Accountants, along with Streets Partner Jon Day, advised and supported the client in terms of the structure of the transaction and the financial and tax implications.
Nigel Moore, Corporate Partner at Buckles and his colleague Nichola Stephens were the legal advisors to BCF Equity Partners, the private equity arm of Bishopsgate Corporate Finance. Crowe LLP also advised the buyer on the financial due diligence aspects of the deal.
Commenting on the transaction Adam said: “The deal was a complex one in that it involved a new holding company, roll over equity for certain sellers and also loan notes, which were secured by a debenture in favour of the sellers. We also simultaneously advised on a shareholders agreement between the sellers and the buyer in the new acquiring company, Hydromarque Group Limited, put new service agreements in place for the main sellers who were remaining as employees and directors of the group and advised on the extraction of the main commercial/office premises to a new property holding company.
“Given this background it was great to have worked with fellow professionals with a desire for an outcome that was commercially attractive and that satisfied all those involved. It shows the strength and depth we have at Streets in being able to successfully advise clients on deals of this nature and complexity.”
The success of the deal transaction and the role of those professional advisers involved in it has been recognised through the deal being nominated and shortlisted for an award in the Dealmaker Awards 2021, for the under £10m deal category for the East Midlands.