Ecolab disposes of Holchem to Kersia

Arrowpoint Advisory has advised Ecolab, a global leader in water, hygiene and infection prevention solutions and services, on the disposal of Holchem, a UK-based supplier of hygiene and cleaning products and services, to Kersia, an international biosecurity and food safety company backed by French private equity firm, Ardian.

Holchem is a UK supplier of detergents, disinfection and biosecurity solutions. The company generates its revenue mainly in the food and beverage sectors and is also active in the food service, retail and institutional sectors, as well as dairy farming. Holchem achieved approximately £47 million of revenue in 2019 out of its two UK manufacturing facilities, the larger in Bury, Greater Manchester and a second in Liphook, Hampshire, both of which supply mainly the UK and Irish markets. Following the acquisition, the combined Holchem and Kersia Group will generate over €300 million in revenue, with 1500 employees and 18 worldwide manufacturing plants.

Ecolab had acquired Holchem in December 2018 was subject to clearance by the UK Competition and Markets Authority (CMA), with the CMA ultimately ruling against the acquisition.

This transaction is Arrowpoint Advisory’s fifth carve out transaction for listed companies since the start of 2018 in the industrials sector alone. The transaction also marks the second CMA related process that Arrowpoint has advised on in the last 12 months.

Stuart Middleton, managing director of Holchem, said: “It was a pleasure to work with Graham, Tom and the rest of the Arrowpoint team - their commercial and technical knowledge was invaluable. They were friendly, hugely supportive and a committed partner in getting the team at Holchem through what was at times a difficult and complex process.”

www.arrowpointadvisory.com