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.
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.
