NVM Private Equity exits Interlube Systems in trade sale
14 Mar, 2013
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.”