- Kinneir Dufort exit delivers 2.8x MoC for Mobeus and 28% IRR
- The MoC could rise to up to 3.0x if KD achieves certain financial objectives post completion
- This is the fourth exit for Mobeus IV (average MoC of 3.3x)
- Mobeus is currently fundraising Mobeus V, which completed its second investment in November 2022
Mobeus has completed the sale of Kinneir Dufort (“KD”), the Bristol-based user-centred design and product development consultancy which delivers world class innovation services for leading Medical, Consumer and Industrial clients around the globe. KD has been sold to SteriPack Group, a full-service contract manufacturer serving global medical device, diagnostic and pharmaceutical customers. This is the fourth exit from Mobeus Equity Partners IV LP (“Mobeus IV”), delivering 2.8x MoC at a 28% IRR. The MoC of the investment could rise to up to 3.0x depending on KD achieving certain financial objectives post completion.
Mobeus initially backed Merle Hall (CEO), Craig Wightman (CDO) and Mike Norris (FD) in the buyout of KD in 2016. The deal was Mobeus’s first investment by Mobeus IV.
With Mobeus’s backing, KD has advanced its internal systems and processes to enable the business to scale efficiently, expanded its management team and widened its client base. As a result, the business has grown substantially, more than doubling profitability over the investment period. At the same time, the quality of earnings of the business has markedly increased by focusing on the high-value medical devices sector.
Mobeus Partner Richard Babington, who led both the original deal and the exit for Mobeus, said:
“I first met Merle, Craig and Mike in late 2015 and was immediately taken by their enthusiasm and plans for taking KD forward to the next stage of its ownership. We worked up the MBO of the company together over the next 12 months and I feel immensely privileged to have had the opportunity to sit alongside them on the board of the company ever since. The exit they have achieved today is testament to their relentless pursuit of value – in all its forms – for all KD stakeholders over the investment term.”
Merle Hall, CEO of Kinneir Dufort, commented:
“We knew from the outset that Mobeus and Richard were the right partner for us, as they demonstrated a valuable commercial understanding of our business challenges and opportunities alongside a collegiate and constructive working relationship, central to any successful MBO and growth journey. We are thrilled with what we have achieved with Mobeus and wish them every continued success in their journey”.
The KD shareholders, including Mobeus, were advised on the sale by Rob Crews and Matt Stafford of (Momentum Corporate Finance (Corporate Finance)) and David Ferris, Elinor Owen and Adam Turner (Osborne Clarke (Legal)).