Waterfall Services (Caterplus)
Sector - Specialist supplier of catering services
Type of transaction - MBO / MBI
Date of investment - 2007
Location - Watford
Enterprise Value at investment - £4.3 m
EBIT at investment - £0.9 m
Original Equity - 22.5%
Equity Invested - £1.25 m
The Company
Waterfall Services is a specialist supplier of catering services to the education and care home sectors. Operating throughout the UK, the company has won several major contracts, including one with a local authority supplying catering services to local schools. It is now one of the largest privately-owned contract catering firms in the UK.
Details of the deal
The investment in 2007 supported the £4.3 m management buy-in / management buy-out of this specialist supplier of catering services to the residential and care home sector. There has been both organic and acquisitive growth which has broadened and diversified the customer base with significant progress being made in expanding services provided to the education sector. In 2008 Waterfall Services acquired Warrington-based Taylor Shaw.
YFM Equity Partners Added Value
- Reviewed several acquisition opportunities
- Assisted in the negotiation and execution of two acquisitions of Taylor & Shaw and HCS
- Audited accounting and administration systems and helped to appoint the Financial Director
- Improved corporate governance and systems - helped to upgrade the IT systems
- Managed the relationship with members of investment syndicate
"Our strategy for Waterfall Services was to build the business via acquisition. We have provided hands on support in helping them locate, negotiate and integrate the acquisitions, positioning themselves for further rapid growth."
Nigel Barraclough, Investment Director, YFM Equity Partners