Motorclean has secured a further £3.2 million of capital from its private equity backer to finance the purchase of Forward Valeting Services.
Back in July 2011, Mobeus Equity Partners supported a secondary management buy-out (MBO) of Motorclean. The deal, worth £6 million by way of a debt and equity package, achieved an exit for previous backer LDC.
The follow-up £3.2 million commitment means that Mobeus Equity Partners, which traded under the name Matrix Private Equity when it first became involved with Motorclean, has now provided £9.2 million to Motorclean.
Newly-acquired Forward Valeting Services has been bought for £5 million and, when combined with Motorclean, is said to create the UK’s largest supplier of cleaning and valeting services in the motor industry. Motorclean says that turnover will be £35 million from 450 dealerships across the country.
The business says that a large proportion of its custom comes from car dealerships which outsource the cleaning of cars to save money and operate with a flexible cost structure.
Steve McBrierty, CEO of Motorclean, comments, ‘Since they first approached us in 2011, Mobeus have consistently delivered everything they have promised.
‘The acquisition of such a high quality asset in Forward has allowed us to bring into our business a great customer base but most importantly high quality people who will supplement our market-leading team.’
McBrierty adds that Mobeus Equity Partners’ ability to provide a combined debt and equity structure has enabled Motorclean to provide the shareholders of Forward Valeting Services with ‘certainty of delivery’.
More on Mobeus Equity Partners/Matrix Private Equity:
- First deal for Mobeus Equity Partners through Tessella MBO
- Matrix invests in Equip
- Matrix sees seven-fold return on sale of DiGiCo
Chris Price, investment director at Mobeus, led the original investment and joined the board of Motorclean alongside fellow new recruit Kevin Finn (chairman) when the firm led the MBO in 2011.
Price says, ‘Motorclean is a typical Mobeus investment: robust, cash generative and most importantly well managed by a team who really know their market.
‘We are delighted to have been able to invest further to support a team we rate highly to create a true UK market leader in a market ripe for consolidation.’