BOW LANE Capital, which was recently launched on AIM to acquire businesses in sectors ripe for consolidation, has bought Silverdell (UK), one of the leading asbestos contractors.
Bow Lane will pay up to £22.2 million for Silverdell, which it says has a strong brand, a blue chip customer base and an experienced management team.
The group said Silverdell's reputation provides competitive advantages in a highly regulated sector, where only a few participants have the expertise and infrastructure to take on major projects.
David Williams, chairman of Bow Lane Capital, said the acquisition 'provides a platform for consolidation in the fragmented asbestos services sector'. This has been growing at 25 per cent annually since 2002 due to growing legislation and the threat of litigation.
Bow Lane is also raising around £10.5 million net in a share placing to help fund the acquisition.