Foresight Group and Maven Capital Partners have exited Aberdeen-based FIS Chemicals in a deal that has delivered a 4.2x return on invested capital, following a period of rapid growth for the business.
FIS will now join US-headquartered Shrieve Chemical Company, a value-added distributor of speciality and commodity chemicals. The exit has generated an internal rate of return (IRR) of 33% for both investors since their initial backing in 2020.
Founded in 1980, FIS specialises in the formulation, manufacture and distribution of chemicals across sectors including oil and gas, renewables, marine, hospitality and logistics. Since a management buy-in led by CEO Kenny Woods and Gordon Davidson in 2020, the company has significantly expanded its international footprint, diversified into new markets and grown its product offering through both organic development and acquisitions.
Over the investment period, FIS increased annual revenues by more than 160% while also strengthening its environmental performance. The company has committed to reaching net zero emissions by 2030 and has already reduced its annual CO2 emissions by 70% since 2020.
Kenny Woods, CEO of FIS, said: “I would like to extend my sincere thanks to Foresight and Maven for their belief in the business and for courageously backing the management team amid the 2020 pandemic. Their expert guidance, continued support and trusted partnership have been invaluable throughout this journey, and it has been a genuine pleasure working together.
“I am incredibly proud of what the FIS team has achieved. Our year-on-year growth is a testament to their dedication, talent and resilience. Looking ahead, we are excited about the opportunities with Shrieve Chemicals. Becoming part of a larger and more diverse organisation creates new opportunities for the FIS team and further strengthens our position in the market.”
Martin McLaren, Partner at Maven, added: “We are delighted to have supported the growth of FIS Chemicals and helped it reach this successful outcome. The management team have performed exceptionally well in driving its expansion and we have every confidence the company will continue its exciting growth journey with its new US parent.
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“It is also particularly pleasing to deliver such a strong return for Maven Investor Partners, reflecting the quality of our investment strategy and disciplined approach to value creation.”
Ryan Finesy, Senior Investment Manager at Foresight, described FIS as “a real success story for Scottish SMEs”, adding: “It has been a pleasure working with Kenny, Gordon and the wider team. FIS demonstrates that having sustainability as a key component of business strategy helps drive long-term resilience and value.”
The deal marks Foresight’s third Scottish exit in the past four years and adds to its track record of investing more than £80 million into growing businesses across the country. Maven, meanwhile, continues to support high-growth companies across Scotland, with recent investments including Quorum Cyber, BioAscent and PowerPhotonic.
