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Motorclean becomes largest provider of car valeting services in the UK
Mobeus has provided an additional £3.2m to portfolio company Motorclean, the specialist car valeting business, to support the acquisition of the trade and assets of Forward Valeting Services as part of a £5m transaction.
Mobeus financed the MBO of Motorclean in 2011 and this follow on funding takes its total investment in the company to £9.2m.
The acquisition sees the creation of the UK's largest supplier of cleaning and valeting services to the motor industry with a turnover of more than £35m and operations at some 450 dealership sites across the country.
Valeting is a vital component of the presentation of cars for sale and perception of service quality for customers using dealers' workshops. By outsourcing their valeting, dealerships are able to save money, operate with a flexible cost structure and improve the quality of the valeting they deliver.
With new car registrations up by 5.3% in 2012 to the highest level since 2008, Mobeus's further investment into Motorclean reflects both confidence in the improved state of the UK car industry, and a firm belief in the continued growth of outsourcing in the UK economy as businesses focus on their core competencies and efficiency improvements.
"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," says Steve McBrierty, CEO of Motorclean.
"Mobeus's ability to provide a combined debt and equity structure was key to our original deal but also enabled us to provide Forward's shareholders with certainty of delivery in what is a challenging market for debt finance.
"Having established the largest player in the market we look forward to working alongside Mobeus in what is a true partnership to deliver further growth and continue to lead our industry in terms of both innovation and customer service."
Chris Price, Investment Director at Mobeus, who led the original investment and who sits on the board of Motorclean, comments:
"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."
28th February 2013