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.”
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Our advisor Joe Stelzer at finnCap Cavendish tirelessly assisted us through the process and was on hand at each and every step of the journey.”
“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.”
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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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