Radical Cars Sportscars / Consortium of Private Investors
Cavendish is pleased to announce the sale of a minority stake in Radical Sportscars (“Radical”) to a consortium of high net worth individuals. The transaction values Radical at £30 million.
Radical is a leading global player in the leisure sportscar and motorsports market. It produces around 230 cars a year making it the second largest manufacturer by volume of purpose-built racing cars in the world, just behind Porsche. Radical enjoys significant recurring revenue from its own single-marque race series in countries around the world, its spare parts business and large existing customer base. Radical generates EBITDA of £3.9 million on £17.5 million of revenues.
Radical has just surprised the automotive world with the launch of a fully road legal version of its racing car at the recent 2011 Frankfurt Motor Show. It has also been named as the vehicle supplier for a motorsport version of the IPL called i1 Super Series which will launch in December 2011 and counts Sachin Tendulkar amongst its backers.
The identity of the new investors has not been disclosed but they include a private family office and an industry expert. Their investment will support the future expansion of the business as well as providing an exit for one of the founders of the business who has retired and for certain minority interests.
Andrew Jeffs, the Partner at Cavendish who led the transaction, said: “Radical is a terrific brand. In the current low interest rate environment we are seeing an increasing number of wealthy individuals wanting to invest in attractive, growing businesses like this.”
“This transaction is a hugely significant milestone in KMP’s development, strongly positioning the business for its next phase of growth, allowing us to extrapolate our already strong global reach with opportunities for economies of scale across complementary brands and products.
I am grateful for the invaluable advice, support and guidance provided by Joe Stelzer and his team throughout the process.”
“The acquisition of FAI by Motus will bring us many synergies, with scope to expand our supply chains and product ranges, as well as the opportunities to enter new markets. Both existing and new customers will benefit from our core aims of best availability, best service, best quality and best price. Our business ethos is so closely aligned with Motus’s that the change of ownership will be seamless, but the benefits will be felt by all.”
“The Cavendish Team, led by Alistair and Mike, did a fantastic job managing the process, providing valuable advice and identifying Arbuthnot as the right partner for the business. It was a pleasure working together and we are pleased to have achieved a brilliant outcome for the company.”
“The Cavendish team were an integral part of this successful process. They were committed and professional throughout. Hydreco has an established market position, international footprint and complementary mobile hydraulic product line and this should be an exciting next phase of growth for the business under new ownership.”
“We are proud of the leading global business Xtrac is today; persistent innovation and exceptional customer service remain our highest priorities. Inflexion shares our values; its investment will accelerate our ambitious growth strategy, developing the next generation of high-end automotive transmission systems and expanding our coverage of the high performance hybrid and electric car transmission market. This partnership with Inflexion supports Xtrac’s ethos of employee ownership, and our team look forward to a new chapter in the continuing development and growth of our company.”
Cavendish played an invaluable role throughout a complex transaction and in particular getting the transaction across the finishing line.
This deal provides an excellent platform for the Levolux business to continue its overseas expansion. As well as the compelling strategic fit, Alumasc provides an excellent home for the Levolux brand and team. We are delighted with the outcome and the support extended to us by Cavendish.
This has been a highly complex transaction involving 10 jurisdictions. Cavendish has held our hands throughout the process, providing a dedicated team who have done a superb job; this has greatly reduced interruptions to our businesses whilst adhering to the original timetable. Cavendish has achieved a very successful sale at a fair price to a buyer who will enjoy significant strategic value from the purchase.
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