Warwick International

Clearwater creates a winning formula for growth with the £129 million management buy-out of Warwick International from US conglomerate Sequa Corporation.

Advised by Clearwater’s Chemical’s team, the management of Warwick International completed a buy-out, in a transaction worth £129m, backed by Close Brothers Private Equity with debt provided by RBS, HSBC, Lloyds TSB and Barclays. The deal allows management to further realise their aspirations for the business and the overall potential of the group.

Warwick International comprises two separate businesses: one a producer of chemicals for manufacturing detergents with clients such as P&G and Reckitt Benckiser; the second an international distributor of speciality chemicals. The company is headquartered in the UK with offices in Europe and the Far East.

Clearwater initially met management in 2005, later identifying an opportunity for a management buy-out. Clearwater introduced Close Brothers Private Equity to support the management team’s strategy for the business. Despite the challenging market conditions, Clearwater worked closely with the management over a sustained period to help deliver the transaction. This represents Clearwater’s ninth deal in the chemicals sector.

This complex deal involved many advisers and was made possible through Clearwater’s sector experience and strong links within the banking and private equity community.

Bob Ellis, Managing Director of Warwick International commented:

“Clearwater did an excellent job in securing managements’ equity share and guiding us through the private equity investment process. Their close relationships in the private equity market were invaluable in delivering the ideal partner and financial backing for the MBO. The support of Philip Nuttall and Nick Horrocks was greatly appreciated by myself and the management team when the financial markets were at their most difficult.”