Biological waste treatment business Cleveland Biotech (CBio) has closed a £4.4 million management buy-out (MBO) to expand across new markets in Europe.

The Stockton-on-Tees business, which provides environmental friendly products, is led by managing director Ben Hoskyns and development director Tony Brooke.

Hoskyns became managing director in 2004 while Brooke joined CBio in 1999 and has led the development of the bacterial fermentation processes used to manufacture the company’s patented products.

On the back of the £4.4 million MBO, of which NVM Private Equity is contributing £3 million, CBio will undergo an organic growth strategy by opening up into new markets around Europe.

Hoskyns comments, ‘[The buy-out] is a strategic move for our business as we make plans to expand into new markets and geographies.

‘The NVM team have been extremely supportive during the deal process and made considerable effort to understand our business.’

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CBio, which is now in its 21st year, has produced fermented bacteria which naturally degrade liquids such as grease, fat, oil, diesel and limescale. It works with customers such as supermarkets, restaurants, hotels and pubs as well as local authorities.

According to a statement, the business recently doubled its European exports following a large sales order from Lithuania and views the Baltic region as an area which will have a growing demand for its products.

New backer NVM Private Equity currently manages some £220 million of funds and has recently closed investments including a £7 million MBO for software business Intuitive and £3.5 million cash injection into Haystack Dryers.

Mauro Biagioni, director at NVM Private Equity, adds, ‘This is a very interesting sector to invest in right now as management expenditure steadily increases in order to avoid legislative penalties.

‘Ben and Tony complement each other well, bringing to the business extensive experience of applied biology and finance.’