Salica Investments exits Bluewater Bio in sale to Verdane-backed Aquavest

Salica Investments, a private markets investor, has completed the sale of Bluewater Bio to Aquavest Ltd, a company backed by Verdane, a European investment firm focused on the lower mid-market.

The transaction marks a milestone for Bluewater Bio, a company that offers proprietary technology solutions designed to improve the efficiency and sustainability of water reuse operations. Since its inception in 2007, Bluewater Bio has enabled more than 1.8 billion tonnes of treated wastewater to be reused for irrigation, clean water for rivers, and sustainable water cycle completion.

Tom Bradley, Managing Partner at Salica Investments, said: “We want to offer our congratulations to the management team at Bluewater Bio, who have done an outstanding job in building a market leader in the water technology space. We are proud of our association with another UK technology leader and pleased to add substantially to the significant returns already generated for Salica’s Limited Partners.”

The existing management team of Bluewater Bio, which took over in 2015 and successfully restructured the company, will continue to lead the company after the sale. Their efforts have led to strong growth, which helped set the stage for the transaction.

Salica Investments originally acquired a majority stake in Bluewater Bio in December 2020 through its Salica Environmental Technologies Fund. This exit is the latest in a series of successful realizations from the fund, including sales of Driivz, OpenEnergi, and i20 Water. Following this exit, the MOIC (Multiple on Invested Capital) for the Salica Environmental Technologies Fund now exceeds 3x.

The existing management team of Bluewater Bio, which took over in 2015 and successfully restructured the company, will continue to lead the company after the sale

Bluewater Bio’s technology sets it apart from competitors by using less energy, land, and chemicals, offering more sustainable water solutions. The company works with clients across various global regions, helping them enhance the efficiency of their water infrastructures while minimizing environmental impact.

Verdane and Aquavest will partner with Bluewater Bio’s management team to accelerate the company’s next phase of development, focusing on expanding its global presence and market access. The partnership will also concentrate on maintaining Bluewater Bio’s commitment to sustainability while expanding growth opportunities in international markets.

The transaction was advised by Arrowpoint Advisory, Rothschild & Co, and BDA Partners, which provided expert guidance throughout the deal.

Tom Smith, Managing Director at Arrowpoint Advisory, stated: “We are delighted to have advised the management team at Bluewater Bio and Salica on this transaction, in Verdane and Aquavest the ideal partners to maximise the business’s growth potential over the coming years have been secured.”

Jonathan Aiken, Head of London at BDA Partners, noted: “This transaction reflects BDA’s strong sustainability practice, including water technologies and services, in the UK and internationally. BDA’s deep sector understanding and global reach proved instrumental in finding the right partner for Bluewater Bio.”

Richard G. Haddon, CEO of Bluewater Bio, added: “We are grateful to the team at Salica for their support for the business in the last five years and we look forward now to our next phase of growth. Bluewater Bio is well positioned to continue its growth trajectory and Verdane’s experience of partnering with sustainability-focused, science-based businesses makes them an excellent partner for Bluewater Bio going forward. This investment provides the resources and strategic support needed to expand our reach and deepen our impact, while staying true to our mission of enabling more sustainable water reuse worldwide.”