Cinven nets a double

Cinven scored two successful buyout exits in quick succession this summer, selling COMAX to Amey for GBP86 million and Corgi Classics to Zindart for GBP29 million.

COMAX was formed through a GBP75 million buyout of the Defence Evaluation and Research Agency’s support services division in the spring of 1997, with Cinven investing around GBP30 million for an 85 per cent stake. As well as paying GBP86 million, Amey has agreed to repay GBP56 million of COMAX’s outstanding debt. Cinven reports a 90 per cent IRR on its investment.

Cinven backed Corgi’s GBP13 million buyout from Mattel in the summer of 1995. The 40-year-old company is one of the longest established and best-known collectible model vehicles brands, with a 55 per cent share of the UK market.

Following the buyout, Cinven and Corgi’s management developed and implemented an aggressive expansion strategy, extending the product range into new territories and additional sectors. As a result, Corgi increased its turnover by 23 per cent to GBP18.7 million and operating profits by 31 per cent to GBP3 million between 1996 and 1998.

Nasdaq-listed Zindart, based in Hong Kong, manufactures a broad range of quality collectibles. Under its new ownership, Corgi is positioned for further expansion into new geographic and product areas.

Cinven investment director Marcus Wood says the Corgi sale generated excellent’ returns for investors.