A supplier of in-flight products to the airline industry has undergone a management buy-out backed by funding from Frontier Development Capital. BDO‘s Reading team provided corporate finance and fundraising advice on the deal.
Watermark supplies customers including British Airways, United Airlines, Virgin Atlantic and Qantas with passenger essentials such as crockery, glassware, bedding, amenity kits and personal care products.
The transaction gives control of the business to a management team led by the current managing director, Kenny Harmel.
It will provide an exit for the majority shareholder Ian Linaker, the current chair, though he will retain a minority stake and his role as board advisor.
Kenny Harmel said: “Securing further investment in Watermark is a testament to the quality of our proposition, team and vision for the future, and I am delighted to continue being the custodian of such an amazing company.
“I look forward to leading its growth in the years ahead and continuing to deliver on our reputation for sustainability and innovation.”
Ian Linaker said: “I’m extremely proud to have been part of the Watermark story and to have had the opportunity to work with such a great team around the world on truly amazing projects.
“I would like to offer a special thank-you to our wonderful customers who continue to put trust in Watermark to solve their greatest challenges and bring a uniquely differentiated experience to passengers onboard.”
Charlie Robinson of Frontier Development Capital said: “With over 40 years’ heritage in the onboard products market, Watermark has an impressive track record in the industry.
“The business has thrived under Ian and Kenny’s ownership, since 2017, despite the challenges during the pandemic, and the growth in demand for air travel is now opening up new opportunities.”
Chris Jones and Karem Al-Dahleh at Gateley plc provided legal advice to FDC while Paul Tallon and Olivia Dowdeswell of Cooper Parry provided financial due diligence.