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.