Another Mobeus deal goes to plan
Mobeus Equity Partners has fully realised its investment in EMaC Limited, the UK’s leading provider of car service plans, through a £36 million trade sale to Innovation Group plc.
EMaC, based in Crewe, is the leading provider of outsourced service plans to car manufacturers and franchised dealers in the motor trade. Service plans are typically sold as add on products at the point of sale and are seen as key customer retention tools for motor dealers. Now in its tenth year of business, EMaC has sold 1.5 million service plans since inception. In 2014, EMaC service plans will help dealers generate £133 million of aftersales revenue.
EMaC has consistently outperformed expectations - turnover has shown strong growth, increasing by c. 60% post investment. By providing high levels of service and product innovation, EMaC has continued to lead the development of the market which has benefited from increased uptake as consumers become more aware of the attractions of service plans to manage the costs of ownership of their vehicles.
The investment has delivered a cash return of 3.1x Mobeus’s original investment of £6 million, an IRR of 49%.
This is Mobeus’s seventh exit achieved over the course of 2014. In total these seven investments have returned cash proceeds of £93.6 million to the Mobeus advised VCTs, representing an average 3.0x money multiple of cost of £31.3 million.
Ashley Broomberg, Partner at Mobeus, commented:
“The success of an investment is all about the engine that’s inside. The engine inside EMaC is Angela Barrow and she has done an extraordinary job driving the business forward whilst developing the overall market for service plans in the UK. It has been a privilege to be part of such a great success story for UK entrepreneurship”.
Angela Barrow, EMaC CEO commented:
“This latest chapter in the EMaC story is a very exciting one, which will support our aims to broaden our proposition and move into new markets. The EMaC brand will continue to be an active part of the UK motor retailing landscape and all of our many customers can be assured that they will continue to benefit from our distinctive service led ethos. What is certain is that this change will enable us to accelerate our development plans!”