NVM Private Equity has exited one of its oldest portfolio companies by selling Interlube Systems through a trade sale.

Following an investment interest of 12 years, Interlube Systems has been sold by NVM Private Equity to a subsidiary of the US-based The Tinken Company.

Although the acquisition of the lubrication products business has been completed for an undisclosed amount, NVM says that the transaction has netted the firm a 3x return on original investment.

Plymouth-based Interlube, which manufactures and markets automated lubrication products for use in cranes, quarries and commercial vehicles, was originally backed by NVM through a management buy-out/buy-in deal.

Acquiring company Tinken is based in the US and produces mechanical components and high-performance steel. According to the company, it sees Interlube as ‘highly compatible’ to product lines and power transmission acquisitions.

Interlube managing director Mike Cusack comments, ‘I have been managing Interlube since the MBO/MBI and have enjoyed being a part of the company’s successful growth story.

‘The sale to Timken is the obvious next step and Interlube will prosper under the ownership of a multinational.’

More on NVM Private Equity:

• Hairstack Dryers links up with NVM
• Portfolio activity continues for NVM
• Paladin moves to trade ownership

Interlube reported sales of £8.5 million for 2012 and has managed to increase its market share by completing strategic acquisitions

Martin Green, managing director of NVM Private Equity, adds, ‘Interlube has performed well in some challenging markets over the life of NVM’s investment, so this is a very positive story for the British manufacturing industry.

‘Mike Cusack and his team have a wealth of experience in this sector and have established strong customer relationships and loyalty.’