Better Capital acquires Fairline Boats from 3i

The transaction represents an exit for 3i and also sees West Registers (Investments) Limited, a company owned by RBS, invest £3.9m to acquire a minority stake in the company. Better Capital was introduced to the deal through a number of sources and was ultimately approached by RBS. The investment was made via the newco Masco 30 Limited and equity was provided by BECAP Fund LP.

Debt
Leverage was not used in this transaction.

Previous funding
Fairline was acquired by 3i in June 2005 in a £40m management buyout. RBS supported the deal with a £29m debt package. The company has struggled during the recession and after having owned the business for six years 3i deemed it would be beneficial to get a new owner and new capital for Fairline.

Since September 2010, 3i had written the investment in Fairline down to zero, which means that the sale of Fairline did not have a significant financial impact for the investor.

Company
Fairline is headquartered in Oundle, Northamptonshire, and specialises in the design, engineering, manufacture and distribution of luxury boats. The company has a dealer network with 69 locations worldwide.

The company was founded in 1963.

People
Mark Aldridge managed the deal for Better Capital and Nick Sanders will join the company's board of directors. Ken Beaty was responsible for the investment in Fairline for 3i.

Advisers
Equity - (Better Capital) DLA Piper (Legal); Macfarlanes (Legal); (RBS) Berwin Leighton Paisner (Legal); BDO (Financial due diligence).
Vendor - Travers Smith (Legal).
Management - SJ Berwin (Legal).

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• Buyouts
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• 3i