The Business
Leading European testing services provider offering real-world and laboratory-based test and validation services to the transport and energy sectors. Established in 1969. Millbrook is one of the most comprehensive testing facilities in Europe and one of only two such facilities in the UK. The business is strategically located at the heart of the UK automotive and fuels industries operating from a 665-acre freehold site offering over 45 miles of on and off-road test tracks with a variety of surfaces, features and terrains, as well as extensive test and validation facilities which complement the proving ground.
Investment thesis
Once Millbrook was carved out from General Motors, the plan was to refocus the business on the outward market opportunity. Investment in a new senior management team was required to supplement the core operational teams and build out a robust finance function. Further significant investment was also planned within the sales and business development teams as well as to develop Millbrook’s international operations. The plan also involved a significant capex development programme to broaden Millbrook’s physical infrastructure capabilities as well as drive operational improvements of existing infrastructure to maximise utilisation to improve margins. Selective acquisitions were also part of the plan with Millbrook acquiring Test World, a Finnish winter vehicle and tyre testing business located in the Arctic circle.
Exit
Millbrook was transformed from a single-site former OEM-facility to a multi-site, multinational independent test service provider, supported through acquisition as well as capacity and capability development. The business was acquired in an off-market transaction by Spectris plc delivering a 6.2x money multiple (111% IRR) to investors. The exit was voted UK Mid-cap Deal of the Year.
