Rutland sells Millbrook to Spectris for £122m

Kenny Wastell
02 September 2016

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Rutland Partners has sold UK-based testing and engineering business Millbrook Group to trade buyer Spectris for ТЃ122m.

The deal represents more than a 6x return for the GP's second fund after just three years at the helm.

Millbrook will become part of Spectris's test and measurement division following the transaction, with the majority of its existing management team remaining in their roles.

Under Rutland's tenure, the business has expanded via the bolt-on acquisition of Test World, a Finnish winter vehicle and tyre-testing business. It has also recruited a new senior management team.

Having spun out from General Motors – and having previously depended primarily on trade from its parent group – Millbrook has expanded its customer base over the past three years. In a statement, Rutland said the company had enjoyed an eightfold increase in its "non-General Motors" underlying earnings, with third-party revenues now accounting for the majority of its turnover.

Rutland's second fund has generated £360m from six exits to date, having made a total of 11 investments with an aggregate value of £300m. Most recently, the GP sold disposable household products business CeDo to Straco Investments in October 2014, generating a money multiple of 2.8x and gross IRR of 25%.

Previous funding
Rutland acquired Millbrook from former parent General Motors in October 2013, marking the 11th investment from the 2007-vintage Rutland Fund II. In 2015, it supported the company's acquisition of Test World.

Most recently, the GP made a further investment in Millbrook's powertrain facilities in March this year. The fresh capital enabled the business to expand the capacity of the division and increase its capability to develop lower emission engines and vehicles.

Company
Founded in 1968, Bedford-headquartered Millbrook provides testing facilities and engineering processes for the automotive, transport, tyre, petrochemical, energy and defence sectors. The business operates from a 665-acre facility and has an additional 45 miles of on- and off-road test tracks.

People
Rutland Partners – Nick Morrill (managing partner); David Wardrop (partner); Rahul Satsangi (investment director).

Advisers
Vendor – Rothschild (corporate finance).