News Room
Aberdeen provides expansion funding for Adler and Allan
Aberdeen Asset Managers Private Equity ("AAMPE" or "Aberdeen") today announces an £8.85m investment in oil and environmental services provider Adler and Allan Limited to provide the business with a strong financial platform for the next phase of its development.
With a head office in Harrogate, Adler and Allan operates from a nationwide network of 16 offices, providing a full range of oil, water and tank services to a blue chip customer base. The business is particularly noted for its skills in emergency spill response situations having being heavily involved in the clean-up exercise in the aftermath of the Buncefield explosion in December 2005 and several other high profile emergencies.
Adler and Allan has grown quickly in recent years as legislation and regulation relating to the transport, handling and storage of hazardous liquids has increased significantly. The Buncefield incident itself further heightened awareness of emergency planning issues leading to yet more demand for the Company's services. Revenues in 2006 were £28m and continued growth is expected.
Aberdeen has invested £8.85m in return for a significant minority stake in the Business. As part of the transaction HSBC is providing enhanced banking facilities to the Adler and Allan Group to support the planned developments.
Colin Stirling and Joe Wiley managed the deal for Aberdeen with both joining the Adler and Allan board. The transaction represents the Private Equity team's third investment in the environmental services sector in the last 7 months, following on from process engineer Enpure in November 2006 and regeneration specialist EDSR in February 2007.
Advice for the deal was all provided locally from the Leeds market place. The company was advised by Deloitte (Barry Jackson) and Cobbetts (Piers Burgess). Aberdeen was advised by NM Rothschild (David Wilton) and Walker Morris (Debbie Jackson) and HSBC was advised by Addleshaws (David Handy).
Financial Due Diligence was provided by KPMG (Alison Legg), Commercial Due Diligence by PMSI (David Crout) and Insurance Due Diligence by Heath Lambert (Martin Hopton).
Mark Calvert, Managing Director of Adler and Allan, commented:
"We are delighted to have secured Aberdeen as a partner to work with us as we continue to expand our national service offering to our client base. We have established a strong market position over recent years and this partnership will enable us to realise the full long term potential of the Business. In particular, our new funding structure will enable us to continue to support organic growth with selective acquisitions where appropriate."
Colin Stirling, Director of Investment at AAMPE, commented:
"AAMPE is committed to the environmental services sector as a long term growth proposition, underpinned by increasingly positive legislative and regulatory dynamics. Mark and his team at Adler and Allan have developed an unrivalled reputation in their niche and we look forward to supporting the Business to continue to build on this excellent foundation."
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