NVM Private Equity (NVM) has made a joint £3.5 million investment in Cleveland Biotech (CBio) and Biological Preparations (BP), with the intention of combining the two businesses.

NMV previously invested £3 million in a CBio management buyout in 2013. The newest cash injection is part of a £10.4 million deal that will combine the company with BP.

It is hoped the new entity will be able to provide an end-to-end cleantech solution for a wider customer base – with the aim of becoming the UK’s market leader in biological solutions for commercial cleaning and food, oil and grease (FOG) management.

Stockton-on-Tees based CBio was established in 1992 to provide nitrifying bacteria to water treatment plants. Since then it has grown into one of the largest businesses of its kind in the UK – providing services to leading restaurants, pubs and even local authorities.

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BP, founded in 2008, specialises in the development of biotechnology solutions for a wide range of sectors including food and drink, water treatment, agricultural and cleaning services.

The company formulates and blends its unique products using microbial, enzyme, plant extract, organic acid and biocide technology – all of which are supplied from its own facility in Caerphilly, Wales.

MD James Patterson said the merger will create an “enlarged business that will offer an extensive range of products and services to exploit the growing demand for biotechnology”.

NVM partner Mauro Biagioni added that all parties are hoping to take advantage of “over 60 years of combined experience in the biological treatment marketing”.

“Both teams have built successful and competing businesses, so the partnership will give the new company a market leading position – especially in light of increasing pressures on companies that produce waste to actively demonstrate their green credentials,” he said. 

Further reading on funding: Banks reject one in four tech SME funding applications