FDC Backs MBO at Airline Products Specialist

A leading supplier of in-flight products to the airline industry has undergone a management buy-out backed by funding from Frontier Development Capital (FDC).

Watermark supplies customers including British Airways, United Airlines, Virgin Atlantic and Qantas with passenger essentials such as crockery, glassware, bedding, amenity kits and personal care products.

The transaction gives control of the business to a management team led by the current Managing Director, Kenny Harmel. It will provide an exit for the majority shareholder Ian Linaker, the current Chair, though he will retain a minority stake and his role as Board Advisor.

Founded in 1980, Watermark is one of the longest established providers of in-flight products to the airline industry. The company, which has offices in London and Hong Kong, partners with airlines to develop bespoke products that reflect their brand and enhance the customer experience.

Watermark is known for its iconic products and innovations, often produced in conjunction with leading brands, and has pioneered the use of many sustainable materials and weight-saving designs. The company, which was acquired by Ian Linaker and Kenny Harmel in 2017, has been growing year on year. It increased turnover by 17% in the last financial year and is on target for a further 12% increase in the current year.

Kenny Harmel, Managing Director, said: “Watermark offers more than just products – we deliver in-flight experiences and create a luxury feel that turns an airline cabin into a ‘hotel in the sky’. I would like to thank Ian for the role he has played in transforming the business over the past seven years. Securing further investment in Watermark is a testament to the quality of our proposition, team and vision for the future, and I am delighted to continue being the custodian of such an amazing company. I look forward to leading its growth in the years ahead and continuing to deliver on our reputation for sustainability and innovation.”

Ian Linaker, Chairman, who has recently launched a new aviation technology venture, Weave Intelligence, said: “I’m extremely proud to have been part of the Watermark story and to have had the opportunity to work with such a great team around the world on truly amazing projects. I would like to offer a special thank-you to our wonderful customers who continue to put trust in Watermark to solve their greatest challenges and bring a uniquely differentiated experience to passengers onboard. I am delighted to be passing on the leadership to Kenny and his team. I look forward to following Watermark’s growth with interest.”

Charlie Robinson of Frontier Development Capital said: “With over 40 years’ heritage in the onboard products market, Watermark has an impressive track record in the industry. The business has thrived under Ian and Kenny’s ownership, since 2017, despite the challenges during the pandemic, and the growth in demand for air travel is now opening up new opportunities. We are excited to be working with the Watermark team and supporting them with the next phase of the business’ development.”

Duncan Lamb and James Vallence at BDO Reading provided corporate finance and fundraising advice to the company.  Emma Hinton and Roger Birchall at Browne Jacobson provided legal advice to FDC while and Paul Tallon and Olivia Dowdeswell of Cooper Parry provided financial due diligence.