NVM Private Equity (NVM) has successfully sold one of its long-standing investments, Interlube Systems, to a subsidiary of US based The Timken Company (Timken). The sale represents a money multiple of 3.0x on NVM’s original investment.
Interlube is based in Plymouth, UK, and manufactures and markets automated lubrication products for use in commercial vehicles, cranes, quarries and heavy-duty production lines. Timken is based in Ohio, USA, and engineers, manufactures and markets mechanical components and high-performance steel. Timken has been steadily adding to its portfolio of businesses and sees Interlube as highly compatible to its core product lines and power transmission acquisitions.
NVM invested in the management buy-out/buy-in of Interlube over 12 years ago. Since then Mike Cusack, Interlube’s Managing Director, and his team have expanded the company’s manufacturing and assembly capability across the globe. With 2012 sales of £8.5 million and 90 employees, the company has successfully increased its market share by making strategic acquisitions and using its long established distributor network and experienced worldwide sales force to create a focused approach to its market. Interlube is now a world leader in lubrication solutions; helping customers to extend up-time and reduce maintenance costs. The company operates from facilities located in the UK and USA.
Mike Cusack, Managing Director of Interlube Systems 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. NVM have demonstrated their faith in the management team, through some very difficult economic times. It has been a pleasure working with them to build the business and we are all grateful for their support over the last 12 years.”
Martin Green, Managing Director of NVM Private Equity:
“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. I am pleased that the sale to Timken will allow Interlube to continue to flourish as part of a larger organisation and expand into new markets. We have thoroughly enjoyed working with such a dedicated management team and wish them the best of luck for the future.”
Notes to editors:
PwC LLP (Corporate finance advisers) – Gary Partridge, Colin Davis
Michelmores LLP (Legal advisers) – Richard Cobb, Henry Taylor, Harry Trick
Interlube Systems Limited is recognised for its quality, reliable service and workmanship in designing, manufacturing and installing lubrication delivery systems and components; and providing installation services. Based in Plymouth, UK, Interlube provides lubrication delivery solutions to commercial vehicle, mining, construction, manufacturing and other heavy industrial customers. www.interlubesystems.co.uk
The Timken Company The Timken Company (NYSE: TKR; www.timken.com), a global industrial technology leader, applies its deep knowledge of materials, friction management and power transmission to improve the reliability and efficiency of machinery and equipment all around the world. The company engineers, manufactures and markets mechanical components and high-performance steel. Timken® bearings, engineered steel bars and tubes – as well as transmissions, gearboxes, chain, related products and services – support diversified markets worldwide. With sales of $5.0 billion in 2012 and approximately 20,000 people operating from 30 countries, Timken makes the world more productive and keeps industry in motion. www.timken.com
NVM Private Equity Limited (NVM)
is independently owned with over 28 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing over £220m of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2m and £10m in each transaction. www.nvm.co.uk
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