Mills & Reeve advises Cheshire chemicals manufacturer on sale to Canadian company


Mills & Reeve has advised a Middlewich chemicals manufacturer on its sale to a Canadian listed company in a multi-million-pound deal.

H2O Innovation Inc. has acquired Genesys Holdings and its subsidiaries, Genesys Manufacturing, Genesys International and Genesys North America in a £17m deal.

Genesys develops, manufactures and distributes speciality reverse osmosis (RO) membrane chemicals, antiscalants, cleaners, flocculants and biocides. Established in 2001, Genesys provides chemicals and services to the membrane industry in almost 70 countries around the world. In the 12 months to end of December 2018, Genesys’ revenue was £6.01m.

Ted Darton, president and chief executive officer of Genesys, said:

“Although Genesys is highly profitable and has grown strongly over the years, we realise that the next stage in growth can only be achieved in combination with a larger organisation.

“Our team has been aware of H2O Innovation for many years and consider them as the perfect partner. They will maintain the family feel that Genesys has developed by looking after its staff and distributors. As there are significant areas of synergy for both companies, we fully endorse the acquisition knowing it will be highly beneficial to all those involved.”

The deal strengthens H2O Innovation’s speciality chemicals business and adds almost 80 distributors and technical sales professionals in complimentary geographies to build one of the largest speciality chemicals distribution networks worldwide.

The acquisition is being financed through committed credit facility and a $22m equity offering.

Mills & Reeve partner Chris Ross, who led the team which included Vicky Protano and Dan Rathbone said:

“Genesys is a fantastic example of a north west manufacturer that has become a leader in its sector worldwide. By becoming part of H2O Innovation, Genesys now has an ideal platform from which to achieve its growth aspirations.”

Frédéric Dugré, president and chief executive officer of H2O Innovation, said:

“The reputation of Genesys is proven and solid. Their sales relationships are long lasting and growing and we look forward to welcoming the Genesys partners into the H2O Innovation’s family.”

BCMS provided corporate finance advice. Baldwins provided tax advice. BCMS lead advisor Parik Bhandiwad said:

“We are very pleased to have helped Genesys find a new home with such a prestigious global player. We are confident these two businesses will work very well together and achieve the goals they have both set out to achieve. We wish them all the very best in the future.”