Clive Owen LLP assist Arc Environmental in MBO

December 14th 2018

Arc Environmental Limited (ARC) has been acquired by two of its senior team in a management buy-out.

Former Associate Directors Darren McGrath and John Ditchburn acquired the shareholding of the founder shareholders and were advised on the transaction by Clive Owen LLP and Endeavour Partnership. The deal was funded by HSBC Bank plc.

Darren and John have been with the business since its formation in 2005. The Durham-based company is currently recruiting for further growth and is now one of the largest geotechnical and geo-environmental consultancies in the North East of England. It works throughout the UK providing site investigation, contaminated land remediation and validation services to a diverse range of customers.

Darren McGrath said: "Arc has a strong and respected reputation in the market. John and I have been closely involved in the business from the beginning and we are excited to have the opportunity to drive forward our ambitious growth plans."

John Ditchburn said: "We have a strong, loyal team at Arc and this deal means the business continues to be owned by people who have been with it from the outset. The team has a wide range of specialist skills and expertise, working in partnership with clients including major engineering groups, contractors and government departments. The future is very positive, and our increased workload has led to the creation of a number of positions within the business, offering opportunities for experienced engineers to join the company at a very exciting time."

Angus Allan, corporate finance partner at Clive Owen LLP, said: "We are proud to have supported Darren and John on this transaction, advising on all financial aspects that has led to the successful conclusion of the MBO. The entrepreneurial endeavours of John and Darren who will undoubtedly take Arc from strength to strength."

Angus leads the Corporate Finance team at Clive Owen having completed in excess of 300 transactions, including a wide range of MBOs / MBIs, acquisitions, disposal and fund-raising exercises for clients.

Nik Tunley, Head of Corporate and Commercial at Endeavour Partnership, said: "John and Darren and the team at ARC are to be admired both in their regional growth strategy and their business mindset and Endeavour is proud to have been regarded as a trusted partner for all legal aspects of this complex MBO."