Dennis Eagle Group

Deal Summary

Catalyst advised the management of Dennis Eagle on its sale to Ros Roca SA in a deal valued at more than £100m.

Based in Warwick, Dennis Eagle manufactures more than 700 refuse collection vehicles per annum and has seen a significant upturn in business following the increasing focus in the UK on the collection and recycling of waste.

Founded in 1953, Ros Roca SA specialises in waste collection and waste processing systems and is the European leader in manufacturing and environmental engineering, primarily aimed at the municipal and urban infrastructure markets.

The business created by the deal is a truly global business generating sales of €400m as part of a larger €600m revenue group.

What difference did we make?

Catalyst has worked with the management team of Dennis Eagle over a period of five years. We initially advised them on the secondary management buy-out (SMBO) from Bridgepoint Capital where we worked closely with the management team and shareholders to finalise the deal structure and negotiate the price paid for the business.

Following the SMBO we advised on the potential exit strategies, reporting to the Board on a periodic basis. During this time we met with a number of potential acquirers of the business. In addition, we worked on three acquisition opportunities for Dennis Eagle, using our extensive international network.

Our relationship continued into 2006 when we completed a refinancing of the business, thereby allowing the institutional investors to realise the majority of their investment.

When Dennis Eagle was approached by Ros Roca SA, they recognised the importance of the senior management team in delivering the future business plan and wanted to ensure their continued involvement in the business. Catalyst devised an ongoing incentive scheme that guaranteed a equity return for the delivery of the business plan, all of which was captured under CGT legislation instead of Income Tax.