The deal is a secondary management buy-out (MBO) of the business as LDC backed the original MBO of Motorclean in 2005.
The business has performed strongly in recent years in spite of the challenging economic environment, reflecting the strength of the management team and an on-going trend for motor dealers to outsource non-core activities.
Motorclean has annual revenues of £22million and operates at around 300 sites in the UK. 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 to Motorclean, dealerships are able to save money, have a flexible service that can work with their business and can improve the quality of the valeting they deliver.
Matrix has invested £6million as a combined debt and equity package alongside a commitment from Lloyds Commercial Finance. The firm sees significant growth opportunities to expand the customer base and provide additional value added services to dealers. Matrix will also explore possible acquisition opportunities in what is a consolidating market.
To facilitate further growth, Matrix has introduced Kevin Finn to the transaction as an investing Chairman. Finn is a serial automotive entrepreneur and on the board of the Institute of the Motor Industry. He has a long track record of leading strategic growth in automotive related businesses.
This is LDC’s second significant exit of 2011 following the successful sale of Ascend to Reed Elsevier in June. Also this year LDC has completed seven new investments in UK mid-market businesses investing over £166million cumulatively valued in excess of £350million.
Yann Souillard, Managing Director of LDC’s Southern Region, comments:
“At the time of the original MBO I was impressed with the high calibre of the management and convinced that the company was poised for further exciting growth. Motorclean has more than matched those expectations and I think the company is an excellent illustration of the success of LDC’s investment philosophy of supporting management teams and adding value to our investments. In Matrix, the company has the ideal partner to facilitate its future success.”
David Warren, CEO of Motorclean, comments:
“We have had an excellent relationship with LDC, which has been hugely supportive. LDC’s contribution over the past six years has been invaluable in terms of assisting our growth and helped put in place the strong platform we now have to embark on further expansion.”