Phoenix Partners swoops for green engineer in £75m deal

Private equity firm Phoenix Equity Partners yesterday revealed that it had bought Gall Thomson Environmental (GTE), from Lupus Capital, in a deal which values the business at £75m.

Great Yarmouth-based GTE, which has more than 30 staff and an annual turnover of around £19m, specialises in manufacturing and supplying products that are used to transfer hazardous, and non-hazardous, liquids and gases from offshore sites. On its website, the company says it is “dedicated to preventing pollution around the world”.

It is the fifth investment from Phoenix’s £450m fund, which was raised in 2010.

Lupus Capital has sold GTE, which is its oil services division, to Copper Bidco, a company set up by Phoenix. Phoenix is backing a management team led by Phil Clifton, the former head of Weir Group’s power and industrial division. The deal was put together by John Rastrick, who leads Phoenix’s Yorkshire operations, and Barry Robinson.

According to Phoenix, GTE will act as a platform for developing a group providing engineered flow control products, which serve the energy, oil and gas markets.

Phoenix’s investment, together with bank facilities provided by HSBC, Santander and RBS, will support the management team in developing and growing the business.

The business is active in 35 countries and significant investment will be made in infrastructure and personnel to help it grow.

Mr Clifton, the company’s chief executive, said: “As a result of working with the Phoenix team, we have an excellent opportunity to create a significant engineering group based on GTE’s strong and trusted position today.”

John Rastrick, a partner at Phoenix, said: “The UK has huge strength in the engineering sector. Phil Clifton brings great experience and ambition to GTE and we see substantial further growth potential for the business both organically and through acquisition.

“There’s a lot to be done with this business for the first six to nine months, after that, we will be looking to buy other businesses into the group. It’s a platform to buy and build other businesses.”

In March 2010, Phoenix completed the primary buyout of Leeds-based Andrew Page, a distributor and wholesaler of automotive parts.

Phoenix backed the existing Andrew Page management team led by chief executive Mark Roberts.

Mr Rastrick added: “Phoenix opened its Yorkshire office in 2009 and, following on from our investment in Andrew Page, GTE is another example of our continued commitment to bring both fees and funding opportunities to the Yorkshire market.”

GTE has two divisions – Gall Thomson, which focuses on bore oil and gas products, and KLAW, which supplies smaller bore products for the marine and industrial markets. Most of the advisers involved in the deal are based in Yorkshire. Funders and advisers included Tom Green of HSBC and Adrian Rowles of Santander, who are both based in Leeds. The vendor was advised by Stephen Griffith of NM Rothschild & Sons, while financial and tax due diligence was carried out by Mark Clephan of Ernst & Young.

A Leeds-based team from law firm Pinsent Masons advised Lupus Capital. It was led by corporate partners Alison Starr and Andrew Black, who were supported by corporate solicitors Chris Neal and Chris Watts and Jon Robinson.

Yunus Seedat, of Addleshaw Goddard, advised the management, along with Jonathan Jones of Squire Sanders.

Mr Jones said: “Lupus Capital has an impressive track record of innovation and high quality service. The new team is now well positioned to accelerate the business’ growth.”

Mr Jones worked alongside corporate senior associate Paul Mann and employment associate Jimmy Keogh on the transaction.

Others involved in the deal included Alan McCaskie from RBS in Edinburgh, Nick Dalgarno of Simmons & Company International and Jim Renehan of Travers Smith.

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