Profitable Stockport drainage company exits after 40 years of growth

Sigo Group has acquired Drainage Advisory Services and Assistance Limited (DASA), a Stockport-based provider of drainage services, leak detection and water infrastructure solutions, in a deal that hands founder Darryl Gartley an exit after more than four decades building the business.

DASA operates across the insurance, commercial and residential sectors, with its core position embedded in the UK insurance supply chain. The business, headquartered in Hazel Grove, Stockport, was founded over 40 years ago and has grown substantially in recent years, with its workforce expanding from 29 employees in 2019 to 69 at the time of the transaction.

In the year to April 2023, the latest publicly available figures, DASA recorded estimated revenues of approximately £9 million - a 27% increase on the prior year and a compound annual growth rate of 29% over the preceding three years. The business carried no long-term debt, with net assets of £1.97 million and total assets of £3.1 million.

The transaction was structured to provide Gartley with immediate value realisation alongside an ongoing participation mechanism, giving him a continuing interest in the future performance of the business. No consideration has been publicly disclosed. Chris Edwards, who has served as Managing Director, will remain in post and continue to lead DASA under new ownership.

Sigo Group identified DASA as a platform investment within the UK insurance supply chain and infrastructure services sector. The acquisition forms part of a broader strategy to build a group of market-leading service providers, supported by investment in technology and operational infrastructure. The buyer was advised on the transaction by Jeremy Carr.

Logros Advisory Partners advised the seller throughout the process, with Corporate Finance Partner Brian Higgins leading the instruction. Legal advice to the seller was provided by CG Professional, with Partner Ben Dredge and Holly Coope acting. Blackstone Solicitors advised the buyer, with Partner Andrew Page leading.

Darryl Gartley said: "This marks an important milestone after many years building DASA. I'm pleased to see the business move into its next phase with a strong partner in place. The support from Logros throughout the process was invaluable in helping us achieve a successful outcome."

Chris Edwards, Managing Director at DASA, said: "DASA represents a compelling opportunity to build on a well-established business with strong foundations and a clear position within the insurance supply chain. I am excited to continue working with the team as we support the next phase of growth, including investment in technology and the development of a broader group of complementary services."

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