19th May 2016

Dow Schofield Watts, the leading specialist financial advisory and equity finance firm, is delighted to announce that it has advised on the sale Colt Holdings Limited and its wholly owned subsidiary Colt Industrial Services Limited (“Colt”) to Augean plc.

The deal between a Yorkshire-based buyer and seller, involved a number of other Yorkshire advisers including law firms Andrew Jackson and Walker Morris LLP.

Based in Hull, East Yorkshire, and established over 25 years ago by George Telford and his sons, Colt provides a broad range of industrial services to a range of customers including major industrial companies, oil refineries, rail and utilities.  These activities include, specialist tank cleaning and high pressure jetting, hydro abrasive cutting, asbestos removal and waste management and tanker haulage.

Augean, based at Wetherby, West Yorkshire, is one of the UK’s leading specialist waste management businesses. Through its Industry & Infrastructure and Augean North Sea Services business units, Augean has significant waste treatment and disposal infrastructure alongside a growing capacity for delivering client site industrial services.  The acquisition of Colt is in line with Augean’s strategy and enhances its offering by providing it with:

  • UK-wide coverage of specialist industrial services;
  • Customer relationships with top-tier companies that have a requirement for hazardous waste disposal;
  • Expertise as an acknowledged leader and innovator in the specialist technical aspects of industrial cleaning, such as tank and heat exchanger cleaning;
  • A fleet of specialist vehicles and equipment some of which is designed and built by Colt; and
  • Opportunities for synergies to be realised from cross-selling, waste disposal and deployment of the Colt’s fleet across the enlarged group.

Initial consideration of for the deal on cash/debt free basis is £9.2 million, plus additional potential earn-out based payments of up to £4.75 million, subject to Colt securing certain contracts. Audited revenue and EBITDA of Colt for the year ended 31 December 2015, on a proforma(*) basis, were c. £7.1 million and c. £1.4 million, respectively.

The shareholders of Colt Holdings Limited were advised on the deal by Roger Esler, Tony Norwood and Paul Herriott at Dow Schofield Watts and by Nick Scott at Andrew Jackson. Augean was advised by Altium and Walker Morris.

Roger Esler, Corporate Finance Director at Dow Schofield Watts in Yorkshire, commented:

“We are delighted to have advised this unique and highly specialised business on its sale to such a strategically motivated acquirer. Colt punches well above its weight by reputation, customer base and service delivery. Consequently, there was wide and international interest in the business but it was highly rewarding to find that the most compelling fit was with another dynamic Yorkshire business. Colt will undoubtedly thrive as part of the Augean Group.”

Nick Scott, Partner at Andrew Jackson, commented:

“Colt has been a significant player in industrial services over the past three decades and we are delighted to have been able to act for the sellers. We wish all parties well in their future endeavours.”

(*) Proforma figures provided for the Colt Holdings Limited Group are for the businesses and assets being acquired and exclude certain elements of that group not acquired by Augean.