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In 2020, after several years of experience in M&A and consultancy (both at Bain & Company), Tim Hayward and Tarun Abraham launched Continuance Capital, a self-funded SF focused on investing in and operating high-quality businesses with an EBITDA range of £1-3M. In 2021, they acquired the self-adhesive label manufacturer PeterLynn. Last month, they gathered a consortium of 26 investors, including several investors from the ETA world and others new to the space, including Novidam and Slack Water Capital, among others, to acquire Jones Skip Hire (Wolverhampton) Ltd, an established leader in the skip hire and waste management sector in the UK. The structure encompassed a significant equity raise, senior debt funded by lender Shawbrook Bank, an earnout and a vendor loan.
Family business Jones Skip Hire was founded in 1998 and is headquartered in Wolverhampton. The company is one of West Midlands’ leading waste collection and processing providers for commercial, industrial, and residential customers. With a team of 75 professionals, its services include skip hire, bins, and bulk hauling. The company also owns and operates a waste transfer and recycling facility. Its revenue for the year 2022 was £11.6M, an increase of 13.1% compared to the revenue of £10.2M the previous year. EBITDA decreased slightly from £2.94M (28.6%) in 2021 to £2.84M (24.5%) in 2022.
Ben Bortner, Founder and Managing Partner of Slack Water Capital, one of the co-lead investors, will join Jones Skip Hire’s Board of Directors and commented: “We believe the company’s waste transfer facility provides several key competitive advantages that will allow the company to continue to achieve above-market growth and profitability. Additionally, the UK waste management industry remains highly fragmented, and we believe Jones Skip Hire will serve as an attractive platform for further consolidation opportunities in the future.” Slack Water Capital’s investment strategy is focused on providing minority equity capital to acquisition entrepreneurs pursuing the self-funded search model.
Continuance Capital Founders commented: “We were primarily attracted to Jones’s impressive track record of growth and profitability, its strong market position and loyal customer base, its management team, and its longstanding employee base. We plan to grow the business both organically and inorganically”.
Buyer: Legal: K&L Gates / DD: Buzzacott / Commercial DD: Anthesis
Seller: M&A: Castle Square Corporate Finance / Legal: Higgs LLP / Accounting: Bytheway & Co
