04 Jul 2017

Bond Dickinson's corporate team in Leeds advised the shareholders on the successful sale of a majority stake in North-East chemicals manufacturer Chemoxy International Ltd. Chemoxy has now been acquired by a French based trade buyer, Novacap SAS, as it seeks to expand its Performance Chemicals division and geographical presence.

Chemoxy's CEO Ian Stark and COO Martyn Bainbridge, who acquired Chemoxy from US-based Dow Chemicals in 2011, retain a minority shareholding in the company and will continue in their respective positions. Since 2011, together with the Chemoxy team of scientists and engineers, they have trebled its profitability creating more than 70 jobs.

BGF invested £10m into Chemoxy in February 2015 and, as a minority partner, has backed the company’s management team since then. BGF has now successfully exited its minority stake and the returns made by BGF will be reinvested to support more growing companies in the UK and Ireland.

The acquisition of Chemoxy by Novacap will create a leading European player in solvents with a diversified, complementary portfolio of large scale and speciality solvents, unique in the European market. Combining the two businesses will also lead to mutually beneficial expertise in developing new end markets, products and geographies. 

Nigel Williams, Partner, was the lead legal adviser and was supported by Rebecca Ridley, Associate, and Leigh Jackson, Trainee Solicitor. Nigel and his team worked alongside lead financial advisers UNW, led by Paul Kaiser and James Allsopp.

Nigel commented: "This transaction marks an exciting new chapter in Chemoxy's 150-year history and it has been a pleasure to be a part of this sale and to support all the shareholders involved."

Ian Stark, Chemoxy CEO said: “It has been a pleasure to work with Bond Dickinson on this transaction. We have been delighted with the responsive and proactive approach they have taken."

This transaction follows the news that Bond Dickinson's corporate team in Leeds has been ranked second in Experian's Q1 2017 league table, up from 20th place.

Last month Bond Dickinson also published a report: Close Encounters: The Power of Collaborative Innovation which explores the deals between large organisations and UK SMEs, including mergers and acquisitions, minority stake purchases and joint ventures from April 2013 to April 2017.