CBPE acquires global speciality water chemical business from Chemtura Corporation for $85m

Close Brothers Private Equity (CBPE) today announces the acquisition of the industrial water chemicals business from US listed Chemtura Corporation for an acquisition price of $85m. The business will be renamed BWA Water Additives (BWA).

BWA is a global supplier of niche speciality chemicals used in a wide range of industrial water treatment applications including the fast growing desalination sector. Key brands in BWA’s portfolio include Belgard® and Flocon® for desalination, Belclene® for industrial scale control as well as BromiCide® and Bellasol®.

BWA’s chemical treatments are used by customers on sites ranging from oil refineries and breweries to air conditioning in office buildings. It supplies ‘scale control’ and ‘biocides’ products to over 80 countries world-wide and is the world leader in treating desalination units where drinking water is produced from seawater. Its products are also used in the prevention of microbiological growth and build-up of lime scale in industrial plants ranging from large cooling towers to smaller air conditioning units.

The business, established in 1973 is headquartered in Trafford Park, Manchester with offices in Atlanta, USA, Japan, Singapore and Dubai.

It has revenues of c.$80m and has approximately 40 employees.

As part of the deal, CBPE has acquired the sales, marketing, technology and supply chain assets from Chemtura. The transaction does not include the manufacturing operations or facilities which will continue to operated by Chemtura.

The proceeds of CBPE’s funding will be used to expand BWA’s product range as well as new product research and development.

BWA represents the latest in a series of deals by CBPE in the chemicals sector. Iain Slater, a partner at CBPE commented

“BWA is an excellent investment for CBPE. We are investing in a business with a long established track record of delivering innovation, product quality and customer service to its clients. Several of the markets it operates in, such as desalination and oilfield chemicals, have significant growth potential and we believe BWA is extremely well positioned to capitalise on this particularly with the benefit of its market leading brands such as Belgard for desalination and Belclene for industrial scale control”.

David Cartmell, who becomes Chief Executive of BWA with immediate effect, said:

“I’m delighted to have the opportunity to return to the company and play a leading role in the next stage of our growth after previously working for the business for over 20 years. The business is committed to continuing to meet our customer needs with leading edge technology products and services.”

Advisers on the transaction included: for CBPE - Addleshaw Goddard (legal). A PricewaterhouseCoopers LLP deal team advised David Cartmell and CBPE on the transaction from initiation of the deal through to completion. Debt was provided by The Royal Bank of Scotland. Cogency provided the market due diligence.

Reader enquiries

BWA Water Additives
2 Brightgate Way, Cobra Court
Stretford, Manchester M32 0TB
United Kingdom

+44 161 864 6678

www.wateradditives.com