Mobeus announces that it has realised its investment in Redline Worldwide Limited, the security solutions and training business, following its sale to Air Partner Plc, a global aviation services group publicly listed on the London Stock Exchange (LSE: AIR), for total proceeds of £9m plus up to a further £1m in earn-out.
Redline provides government-standard security solutions and training for aviation related companies, event security, corporate organisations and Critical National Infrastructure (CNI) properties. The products and services include training, quality assurance, compliance and covert testing. It also carries out audits and health monitoring of security systems, processes and protocols for both public and private sector organisations.
The Mobeus VCTs invested £3.7 million in Redline in February 2016; the first Mobeus VCT investment made under the new VCT growth capital rules. Since then, Redline has expanded its contract base significantly and now operates across Europe, the Middle East and Australasia.
The sale represents a money multiple, for the VCTs, of 1.9x cost and an overall IRR of c. 20% including earnout consideration.
Rowan Grobler, the Mobeus representative on the Redline board, said
“Since the VCT rule changes in late 2015, Mobeus has built a hugely experienced investment team, and together we have backed 18 fast-growing, younger companies.
“The development of this dynamic portfolio is encouraging, and it is great to see Redline and other portfolio companies creating real value and returns for the Mobeus VCT shareholders. There will be strong strategic synergies achieved through Air Partner’s acquisition of Redline and I wish the team all the best for the next stage in their growth journey.”
Redline Shareholders were advised by Park Place Corporate Finance (Leeds) and solicitors, Squire Patton Boggs (Leeds).
“Air Partner has made a transformational acquisition whilst management and the Mobeus VCTs have realised an attractive return. It’s a great outcome for all parties and highlights the importance of backing businesses with commanding market positions and then using our experience and networks to create something of real strategic value.”Clive Austin, Mobeus Partner and Head of Portfolio