Finance Wales’ investment funds Jet-Vac’s MBO
21/10/11
Finance Wales has completed an
undisclosed equity investment as part of a larger round to fund the
management buy-out (MBO) of Port
Talbot-based specialist industrial cleaning company, Jet-Vac
Systems Ltd. The company’s management team has used the
investment to purchase Jet-Vac from founder, Nigel Drane, following
his retirement.
Established in 1989, Jet-Vac provides
specialist industrial cleaning services for the £155 million-a-year
petrochemical, power and utilities markets. Jet-Vac already
has a wide customer base which includes a number of high-profile
blue chip companies.
Jet-Vac built its reputation servicing oil
refineries, coal and gas-fired power stations, cement works and
waste-water treatment plants. The new management team will
continue to expand the company’s reach in these markets. They
have also recently added Biomass fuel and carbon cleaning to the
company’s range of services.
“Jet-Vac has developed a strong position in
the market for industrial vacuum services, high-pressure water
jetting, catalyst handling and mechanical bolting. We’ve already
expanded our services and we see a bright future as new legislation
and environmental concerns drive demand for what we do,” explained
Geraint Jones, Jet-Vac’s Managing Director.
“The MBO marks the start of a new era for
Jet-Vac, and the new management team is committed to expanding the
company. We operate in highly regulated markets where demand
is continuing to grow, so there are some interesting opportunities
for us to target,” Jones continued.
Jones and fellow directors, Richard Wells
(commercial), Paul Williams (operations) and Kevin Viant
(technical) believe Finance Wales’ investment will enable them to
build a sustainable business: “Finance Wales has demonstrated
confidence in us and our plans for the future. They
structured an equity investment because it best suits our long-term
business plan.
“We want to focus on expanding our range of
services to suit both existing and new customers. We’re also
looking forward to working closely with Finance Wales as we develop
our business.”
David Birch, the
Investment Executive at Finance Wales who worked with the new board
of directors on the MBO, said: “Geraint, Richard, Paul and Kevin
are very committed and have worked hard to turn Jet-Vac into the
success it is today. They have a deep understanding of their
customers’ needs and the markets they operate in.”
“We’ve structured this equity investment to
underpin their ambitions for the business and give them the best
chance of success. This is only the start of our relationship
with the team and we’re looking forward to working with them in the
next few years to help them achieve key milestones and make the
most of our investment.”
Seamus Gates, Director of Corporate Finance at
Broomfield and Alexander who advised the Jet-Vac team, commented on
the MBO: “The current climate for bank funding meant that the
processes were more complicated than they might otherwise have been
for an MBO. We’re proud to have supported a management team as
committed as Jet-Vac’s. We’re also pleased to have worked
alongside Finance Wales, whose flexible approach to funding has
helped a number of our clients achieve their goals.”
Jet-Vac is Finance Wales’ latest investment in
an environmental business, as Birch explains: “Environmental
Services is a growth sector which is being driven by a range of
factors, from new legislation to the introduction of new
technologies. We’re keen to talk to more businesses in the sector
with growth plans to add to our portfolio.”
For more information, please contact:
Helen Walker-Smith
Tel: 029 2033 8149
E-mail: helen.walker-smith@financewales,co.uk