Millbrook to join Spectris
Spectris plc has completed the acquisition of the entire share capital of Millbrook Group Limited (Millbrook) from Rutland Partners and Millbrook's management shareholders, bringing the 655 acre vehicle and engineering test facility in Bedfordshire under new ownership.
Both Spectris and Millbrook are set to benefit from the investment, which enables Spectris to make an important step in its strategy to provide customers with differentiated solutions that combine hardware, software and services. Millbrook will become part of the Test and Measurement business segment of Spectris plc and complements a number of its existing businesses. The integration will enable Millbrook to continue with its ambitious plans for growth, accelerating capital investment and international expansion.
The purchase consideration of £122 million, on a debt and cash-free basis, (of which £3.4 million is deferred for 24 months) will be met from existing cash and bank facilities.
Millbrook is one of Europe's leading test, validation and engineering service providers primarily for the automotive and related markets such as tyres, petrochemical, defence and security.
Established in 1968, Millbrook was sold by General Motors (GM) to Rutland Partners and Management in 2013 and from that point it has been transformed from a GM dependent business to one with a broad base of UK and international clients and test and validation services.
Furthermore, in September 2015, Millbrook acquired Test World, a leading winter vehicle and tyre testing business within the Arctic Circle, based in Finland. Millbrook's services and capabilities allow customers to speed up their product design and launch processes and, in turn, improve their return on development investment. The business' UK test tracks and facilities are located on a wholly-owned 665 acre site in Millbrook, Bedfordshire that has scope for further related commercial development.
Alex Burns, CEO, Millbrook Group, said: “This is a strategic move for Millbrook and we are very excited to be joining Spectris. There are many advantages to becoming part of this global group, which will underpin our investment plans. Spectris’ other portfolio companies will bring us expertise and capabilities so we can offer our customers innovative solutions. We will retain all jobs in Millbrook and we will have the opportunity to accelerate Millbrook’s growth through investment and expansion into key international markets. We will remain independent and impartial and benefit from the stability that this change brings to Millbrook Group.”
John O'Higgins, Chief Executive, Spectris plc, said: “Millbrook represents our largest purchase to date of a pure testing services business. It is closely related to our existing instrumentation businesses and, as such, the acquisition is an important step forward in the realisation of the Group’s strategy to provide our customers with differentiated solutions that incorporate a combination of hardware, software and services. We believe that there is a significant opportunity for Millbrook to strengthen its market position and accelerate its growth through continuing its recent capital investments and making bolt-on acquisitions to expand internationally and broaden its service portfolio.”
Rutland Partners stated: “Through extensive completed and planned capital expenditure the business is primed to drive strong growth for its new owners. We wish Alex Burns, the team and Millbrook’s new owners every success.”