Drainage rivals unite to create £50m business
Deal broker describes merging firms as "perfect fit" for each other
Britain’s two biggest drainage companies have joined forces in a deal orchestrated by Lyceum Capital.
It is thought that the merger of UK Drainage Network (UKDN), the largest drainage claims manager in the home insurance market, with Slough-based Waterflow Holdings will create a £50m turnover company.
While UKDN has grown revenues by 30% since its acquisition by Lyceum in January 2010, Waterflow already boasts a host of big-name clients including Network Rail, London Underground and Balfour Beatty.
Simon Hitchcock, partner at Lyceum Capital and non-executive director of UKDN, described the two companies as a “good fit” for each other, adding:
“The enlarged business will provide customers with a full range of drainage services, geographic coverage and technical expertise as well as a much deeper level of resources.
“This is a transformative deal for both businesses and is a key step in our strategy to consolidate the highly fragmented drainage services market, where legislation and an increasing focus on driving efficiencies through outsourcing is creating new growth opportunities for businesses with the right reach, experience and skills.”