Leading strategic technology fund completes investment into the Salford Valve Company
Savalco’s “Eco-Valve” technology allows aerosols to use compressed air instead of the widely used hydrocarbons as the propellant, providing a far safer and more environmentally friendly solution for the huge aerosol market, and, most importantly, at an equivalent cost. The company’s patented valves took years to develop but they do that mean aerosol manufacturers can henceforth avoid covering the rear of each can with the usual warnings – “extremely flammable” and “solvent abuse kills”.
The technology was originally spun out from the University of Salford. Prof Gasm Nasr, Dean of Engineering and the original inventor of the technology, commented: “Salvalco has satisfied leading brands that the Eco-Valve provides a spray that is equivalent to existing hydrocarbon products and we have worked hard with their supply chains to ensure we can deliver large-scale manufacturing”. Tom Goldberg, is Salvalco’s Chairman and he funded the early developments through the AWI Group, which he also chairs – “We now have the financial partners to enable Salvalco to become a global player in the sector and allow the industry to switch from Hydrocarbon’s to simply using compressed fresh air, in the same way that we saw the shift from CFC’s in the late 1970’s”.
Greig Tulloch, CEO of Salvalco points that “we initially thought having such a good product and early traction with major players would be enough to secure major investment from institutional investors. We hadn’t appreciated the level of detail and complexity of such a transaction. By working with Ruffena Capital we were able to develop an investment grade plan and supporting financials that attracted a number of offers from different investors and we had the luxury of being able to choose a partner that combines not only the financial strength of an institutional investor but also the engineering and commercial expertise of a highly innovative engineering company. Ruffena worked with us right the way through to completing the deal and supported us in negotiations and due diligence. And when it came to the legals they worked closely with Walker Morris LLP, our legal advisors”.
Robin Rowland Hill, CEO of Ruffena Capital comments “This just the sort of opportunity we like at Ruffena: really interesting technology; clear market demand able to deliver scale; and a convincing team. Despite this, the campaign and transaction took effort and care to agree the optimal backer for the business. We look forward to SalValCo being able to transform this global market and generate excellent returns for management and investors alike”.