NVM exit nets 70% IRR

Newcastle-based venture capitalist NVM has sold its stake in defence logistics company Product Support to European supply chain services group Wincanton.

The disposal realised an IRR of more than 70 per cent, according to NVM.

NVM invested £6.7 million in Product Support’s management buy-out (MBO) in December 2006. The disclosed IRR suggests that the firm sold its stake for more than £13 million.

Andrew Sheppard, managing director of Product Support, comments: ‘Since the MBO we have outperformed our plans and made significant investments. Our business will be stronger as part of a larger group.’

Product Support provides warehousing and logistic support services services, including packing and kitting, to the defence industry. It deals with equipment such as helicopters and fixed-wing aircraft.

The company has benefited from growth experienced by equipment providers to the Ministry of Defence (MoD), driven by the MoD’s strategy of developing its partnerships with industry.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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