Private equity firm Elysian Capital has put Volvox, a Leeds-based car parts manufacturer, up for sale. Big Four firm PwC has been hired to explore the market for possible sale options.
Volvox is a British manufacturer in the area of lighting, electrical and consumable products. Examples of products include car light bulbs, chargers and battery packs. Volvox is organised along three divisions: Ring, its 40-year-old vehicle lighting unit; Van-Line, its garage workshop focused business; and BMAC, its train headlight division.
In 2005 the company was granted an independent status when it executed a £12 million management buy-out (MBO), backed by the private equity arm of Lloyds Banking Group. Since the MBO the firms’ sales have risen by 60% to £40 million. In addition, its exports have more than quadrupled from less than £2 million to £8 million.
In 2011 Lloyds sold Volvox to counterpart Elysian Capital, a private equity firm founded in 2008 that specialises in lower mid-market deals of between £10 million and £100 million, with a focus on the UK.
Up for sale
Three years down the line Elysian Capital has now decided to capitalise on Volvox’s higher value and has put the automotive producer up for sale with a £40 million price tag. The Corporate Finance practice of PwC has been hired by the private equity firm to carry out a strategic review and to explore possible sales options. In addition, PwC will (if required) manage the transaction process.