Public to Private Transactions
The public capital markets provide limited benefit to companies with values less than £100 million, unless the business is able to grow at an exceptional rate that merits the support of the investment analysts and permits liquidity in the stock. In consequence, there has been a steadily growing trend in recent years for listed, small capitalisation companies to withdraw from the Stock Exchange by a private company offering to buy all the shares of the company.
IDJ has a well established position in these transactions.
OSS Group Limited
OSS Group Limited, based near Liverpool, is a private company engaged in the collection, processing and recycling of waste oils and associated wastes. Its services cover England and Wales. It sells both virgin oils and recycled product.
Greenway Holdings plc, based in Leeds, was listed on the London Stock Exchange. It too carried out the recovery and recycling of waste oils and garage wastes and the distribution of lubricants. Its sales were materially larger than those of OSS, although its profits and growth rate were smaller. IDJ was engaged by OSS to raise all the capital needed, in a mixture of new equity and debt, to finance the acquisition, capital expenditure and additional working capital. The terms of a cash offer were agreed with the Board of Greenway and its advisers. IDJ made the offer on behalf of OSS and brought the assignment to a successful conclusion in the minimum amount of time permitted for a public offer.
Petroferm, Inc.
Petroferm, based in Florida, is a privately held speciality chemicals company. IDJ was retained by Petroferm to identify a suitable business for acquisition, to provide an enlarged presence in Europe and new products for production or distribution by its core operations in the United States.
Banner Chemicals PLC, listed on the London Stock Exchange, focussed on the formulation and distribution of solvents and performance chemicals for some of the world's largest manufacturers, as well as the manufacture of flame retardants and smoke suppressants. It was of modest size, with limited ability to raise additional capital or grow by acquisition. IDJ initiated the approach to the Banner Board, negotiated with the Board committee to obtain an agreed, recommended offer and arranged the due diligence. IDJ also assisted in obtaining the debt facilities, produced the offer documentation and made the offer, on behalf of Petroferm.
