Matrix commits £6 million to Motorclean buy-out

Private equity firm Matrix Private Equity Partners has backed the management buy-out (MBO) of valet service provider Motorclean, acquiring the company from LDC.

Matrix cites ‘significant growth opportunities’ to expand the Essex business’s customer base and provide additional value-added services to dealers as one of the principal reasons for the acquisition. The firm will also explore possible bolt-on acquisitions to build on the Motorclean purchase in what the firm describes as a consolidating market.

The £6 million investment in the buy-out is a combination of debt and equity alongside a commitment from Lloyds Commercial Finance. LDC backed the original MBO in 2005.

Founded in 1975, Motorclean has annual revenues of £22 million and operates at around 300 sites in the UK. The business’s major clients are car dealerships who have outsourced their car cleaning and valet services.

As part of the deal, Matrix has appointed serial automotive entrepreneur Kevin Finn as chairman of the company’s board. Finn is also on the board of the Institute of the Motor Industry.

Chris Price, investment manager of Matrix who led the deal, comments, ‘Motorclean is right in our investment sweetspot supporting buy-outs of companies making £1 million to £3 million of operating profits. It has proven itself to be a robust, cash generative business with a strong management team which, rather than exiting now, want to rollover their stakes and deliver further growth.’

Motorclean chief executive David Warren told GrowthBusiness last year that since the LCD buy-out, the company has seen its revenue surge from £13 million in 2005 to £20 million for the 2009 year-end. Warren attributes the growth to the additional responsibilities and training given to management.

Todd Cardy

Todd Cardy

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital.

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