Thrislington Exit Provides Healthy Return to MSIF Venture Fund
08th August 2008
AFM has negotiated the exit from MSIF Venture Fund 1’s investment into high end toilet cubicle and wash room fittings manufacturer, Thrislington. MSIF invested £700k into the business in 2000 - £500k through MSIF Venture Fund 2 and £200k through MSIF Mezzanine Fund 1.
Thrislington was established in 1982 and was subsequently bought out by its management in a deal led by Patrick Wilson and backed by 3i.
The company had built up an impressive customer base to include banks, hotels and galleries. The company worked with clients all over the world including the New York Art Museum, Hilton Beach Dubai, Hong Kong Jockey Club and Charles de Gaulle Airport in Paris together with UK-based projects at the Tate Modern, Kew Gardens and Chelsea Harbour.
Following the buy out, Thrislington ran into difficulties and approached MSIF in 2000 for funding. MSIF put together a rescue package and bought out 3i, taking just short of a 20% stake in the business.
After MSIF’s investment the company experienced a further downturn in business following 9/11 as city institutions and hotels – two of the company’s major markets – began to cut back on spend.
MSIF worked closely with MD Patrick Wilson to put the business back on track. Overheads were cut, some manufacturing was brought in house and the company started to produce lower priced cubicles in order to diversify into different markets including the education sector. The introduction of the new product range significantly improved the performance of the business.
Early in 2008 an approach was received from a trade buyer and following complex and protracted negotiations the entire business was sold in August.
MSIF Venture Fund 2 received a return totalling 1.5 x its original investment. MSIF Mezzanine Fund 2 had been repaid much earlier in May 2005.
Portfolio Director Jerry Mobbs who led the deal for AFM and MSIF said:” Patrick Wilson and his team have led the business through difficult times, and we are delighted to have been able to continue to support them. Their commitment and hard work has resulted in a successful outcome both for them and the Fund. “
Ends
For further information please contact Angela white at Alliance Fund Managers on 0151 242 6376.
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