YFM Equity Partners has sold its stake in GTK Limited to Volex Plc for 14.3 million pounds. UK-based GTK is a provider of electronics solutions including cable assemblies, connectors, displays and manufacturing solutions.
YFM Equity Partners (“YFM”) has exited its investment in GTK Limited for £14.3m, to Volex Plc, generating a return of 3.4x original cost to its funds and a 36% IRR.
YFM supported the incumbent management team in the primary buyout of GTK from its founder in October 2013. During the past five years, YFM has seen invested revenues grow over 60% and profits have more than doubled. The growth has been driven by continued investment in the UK sales team; the opening of a new sales office in Germany; a near doubling of manufacturing capacity in the UK; and the opening of a new manufacturing facility in Romania in 2016.
John Morath, CEO at GTK, added: “GTK has grown tremendously since the MBO driven by a continued investment in sales reach, operational capabilities and international expansion. It has been a great journey to go on with YFM who have been the supportive partner that they said they would be.”
Jamie Roberts, Partner who led the investment for YFM, said: “We have really enjoyed working with John and his team at GTK over the last 5 years and it is great to have been part of another UK manufacturing.”
About YFM Equity Partners
YFM Equity Partners are leading independently owned private equity investors. With 35 years of experience we seek to unlock value and growth potential by providing up to £10 million of equity to fuel the development of established business throughout the UK regions. We do this by helping our portfolio companies grow niche businesses, launch new initiatives, make transformative acquisitions and upgrade technologies and systems. Through our offices in Leeds, London, Manchester, Birmingham and Sheffield, we are dedicated to working alongside management teams to create long-term value for our investors, the companies we invest in and a positive economic impact for the communities in which we work. We advise and manage approaching £225 million of funds.
YFM Equity Partners conducts its investment business through its subsidiary YFM Private Equity Limited which is authorised and regulated by the Financial Conduct Authority (FRN: 122120).
For more information, please visit www.yfmep.com or follow us on Twitter @YFMEP.