CBio set for the acquisition trail after £3m backing for buyout

NVM Private Equity has invested £3m to support the £4.4m management buyout (MBO) of Cleveland Biotech (CBio).

Stockton-on-Tees-based CBio was established in 1992, to provide nitrifying bacteria to water treatment plants.

The company has grown to become a leader in the field of applied environmental biotechnology.

It is developing fermented bacteria for use in a range of biological products which naturally degrade a range of organic pollutants, including grease, fat, oil, diesel, uric acid and limescale.

The business supplies its products to a wide range of supermarkets, restaurants, hotels and pubs as well as local authorities.

CBio recently revealed that it had doubled its European exports, after landing a series of large sales orders from Lithuania for its pro-biotic cleaning products, which are used in multi-surface and toilet cleaners.

Environmentally friendly cleaning products are likely to replace their traditional counterparts across the Baltic.

As a result, CBio’s management believes this may open doors to other European markets, and allow it to compete with leading UK cleaning brands. The CBio management team, of Ben Hoskyns, the managing director, and Dr Tony Brooke, development director, have grown the business over the last decade.

Over the last year, the company’s turnover has risen from £1.6m to around £2m. It employs 16 staff and has service engineers around the UK.

Mr Hoskyns said the investment from NVM enhanced the company’s credibility and profile, and he confirmed that he was about to embark on a 100-day plan to help develop the business.

Further appointments are expected soon, and the firm is poised to boost its sales and marketing functions.

“Our market is enormous,” he said. “Anybody who fries a chip for somebody else is a potential customer of ours.”

Mr Hoskyns said he hoped to treble the company’s turnover in three to five years, and there could be a number of potential acquisitions to support the company’s existing core businesses.

Mauro Biagioni, director of NVM Private Equity, said yesterday: “This is a very interesting sector to invest into right now as FOG (food oil and grease) management expenditure steadily increases in order to avoid legislative penalties.

“Ben and Tony complement each other well, bringing to the business extensive experience of applied biology and finance. They have succeeded in helping the business to grow, responding well to market changes.

“We are excited to be backing an experienced management team with a clear vision for CBio’s future growth.”

NVM Private Equity was advised by a team from law firm Bond Dickinson’s Leeds and Newcastle offices.

They were led by partner Alistair Scott-Somers.

Mr Scott-Somers said: “We are delighted to have acted for NVM on this investment in the MBO of CBio.

“It is an extremely exciting time for the Teesside-based company, having just secured a number of new contract wins, including an opening into the Baltic market.”

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