Mobeus exits Vectair for 8.3x MoC return
Mobeus has sold its stake in Vectair to a consortium of US investment funds, including Oxbow Industries and Arcspring, which has invested in the company’s future growth.
Encouraged by Vectair’s now fully established North American presence and increased market share, this highlights the significant role investors play in supporting UK businesses to achieve international expansion.
With this, its fifth VCT realisation of 2020, Mobeus maintains its highly rewarding exit run. Realised gains to the VCTs surge to over £68m, while the average multiple of cash proceeds over original cost for these investments is 3.1x.
Mobeus has exited its investment in Vectair, the innovator, manufacturer and supplier of aircare & hygiene products. A consortium of US investment funds, including Oxbow Industries and Arcspring, has invested in Vectair, alongside management. The exit generates an 8.3x multiple of cash return over original cost for the Mobeus VCTs, after almost 15 years, highlighting the value of patient capital for this investment. Further details of the transaction have not been disclosed.
Since Mobeus first invested in 2006, the company has been progressively developed into a well-respected, international business, positioning it for further investment from US-based backers. Vectair has grown revenues by more than four and a half times, notably driven by North American sales growth, and profits have increased eightfold over the period. With a European Head Office in Hampshire, UK, US Headquarters in Memphis, USA, and manufacturing facilities around the world, it supplies over 130 countries. The company counts a number of blue chip facilities management and hygiene companies amongst its clients.
Management was advised by Spectrum Corporate Finance and White & Black Legal.
01 December 2020
"We are delighted that during our investment term, Vectair has become an established platform, set to achieve accelerated growth hand-in-hand with its new partners. Mobeus’s investment approach places great importance on patience and long-term partnership; it’s great to see that strategy pay off for everyone, with Vectair having found fantastic new partners and investors and the Mobeus VCTs delivering an eightfold return for shareholders.”
Clive Austin, Mobeus Partner