Background

Vectair Systems is a leading manufacturer and supplier of aircare and hygiene products. With manufacturing facilities around the world, Vectair supplies over 130 countries, and counts a number of blue-chip facilities management and hygiene companies among its clients. Private equity firm Mobeus had invested in Vectair since 2006, working alongside the management team to grow the company into a well-respected international business, and positioning it for further investment from US-based backers. Ahead of a planned management buyout, Vectair’s shareholders engaged our Corporate Finance team to review the business and then market the opportunity to potential investors.

Action

Our Corporate Finance team carried out a strategic business review of Vectair and advised Mobeus on how to position the company to attract the best fit for future investment. The team then identified the most suitable potential buyers, and marketed the opportunity to appropriate interested parties – both in the UK and overseas. The shareholders were looking for an investor who could continue to accelerate the ambitious international growth strategy of the management team, while enabling the business founder and CEO to step back from the business.

Outcome

Vectair received multiple offers from investors, and the shareholders eventually entered into exclusivity with a consortium of US investment funds including Oxbow Industries and Arcspring, with debt provided by NorthStar Capital. The complex transaction, completed during the global pandemic and involving cross-border parties, delivered new partners and investors for Vectair and allowed the CEO to continue in the role of Executive Chairman. The sale generated an eightfold cash return for Mobeus shareholders after a 15-year investment.