Better Capital acquires Fairline...

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Better Capital acquires Fairline...

Industry News

The British motorcruiser now has the financial stability it requires for the future.

JULY 2011

A Better Capital, via its Becap fund, has acquired a majority stake in Masco 30, a new company set up solely for the purpose of acquiring 100 per cent of the share capital of British yachtbuilder Fairline Boats and its subsidiaries (together known as the Fairline Group). The business was sold by majority shareholder 3i, which funded an MBO in '05.
Under the agreement, West Register (Investments), a company wholly owned by RBS, will acquire a minority stake in Masco 30.
Based in Oundle, Northamptonshire, Fairline builds motorcruisers from 11.6-24.4m (38-80ft). Overall the company employs around 950 people, which down from the 1,550 peak three years ago, and presently it has sales of around £100 million on the sale of 160 or so boats a year. Its exports business, gleaned from almost 70 countries worldwide, accounts for 80-85 per cent of turnover.
BECAP and RBS have committed £16.6 million and £3.9 million respectively to finance the transaction and to fund restructuring and working capital requirements.
Nick Sanders, the portfolio head at Better Capital LLP, will join the Fairline Group board as chairman.
“This investment will allow us to focus on three core elements paramount to our continuing success as a UK manufacturing business,” says Fairline CEO, Derek Carter (pictured below). “Those elements are new product development, the implementation of new build technologies and the support of further growth in burgeoning overseas markets... The investment allows our three-year model launch plan to be set in motion, which includes the completion of our much awaited flagship, the Fairline Squadron 80.”
London-based Better Capital is a turnaround specialist, so actively seeks investment opportunities that require restructuring, both operationally and financially.
Typically, it will invest in businesses with a turnover of £25 million to £250 million, requiring an investment of £5 million to £42 million and having significant operations in the UK or Ireland.

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© Phil Draper