Rutland engineers Millbrook deal

Alice Murray
03 October 2013

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Rutland Partners has acquired Millbrook Proving Group from parent company General Motors (GM).

GM will remain a Millbrook customer following the separation, with both entities signed into a number of long-term supply agreements. The company also has third-party relationships outside of GM, which it will look to expand.

Rutland's investment will be used to expand Millbrook's facilities and services. The capital will also be used to increase staff numbers and improve IT systems.

The deal size has not been disclosed, but Rutland typically invests between £10-50m.

The deal marks the 11th investment from Rutland Fund II, which closed on £322m in July 2007, well over its original target of £250m, according to unquote" data.

Company
Millbrook offers testing facilities and engineering processes for the automotive, energy and defence sectors.

Established in 1969, the company is based in Bedfordshire. Millbrook operates through its 665-acre site, which houses more than 45 miles of both on- and off-road test track combining a variety of surfaces and terrains. The site also offers test and validation facilities.

The company's revenues stand at around £40m and it employs more than 400 people.

Millbrook also converts specialist vehicles. As legislation concerning emissions and vehicle safety continues to tighten, the company has developed its engineering and development offering, working with both GM and third-party customers.

People
Miguel Fragoso is CEO of Millbrook. John Notman-Watt joins Millbrook's board as executive chairman.

Managing partner Nick Morrill, investment director David Wardrop, investment manager Rahul Satsangi and partner Ben Slatter led the deal for Rutland.

Advisers
Equity – Taylor Wessing, Nick Hazell, Ed Waldron, Richard Bursby, Neil McCarroll (Legal); BDO, Chris Grove, Derek Neil (Financial due diligence); Richard Rose (Tax); HMT, Andrew Thomson, Julia Carruthers (Financial due diligence); PwC, Andrew Smith, Ben Smith (Tax); Intuitus, Iain Mackay, Phil Reynolds (IT due diligence); Gallaghers, George Minoprio, Graeme Merry (Insurance due diligence); Eviron, Matthew Pannett, Sophia Passmore (Environmental due diligence).