Maven sells investment in Lab M to US food safety company Neogen Corp
Maven has sold its investment in Lab M Holdings, a developer, manufacturer and supplier of microbiological culture media and diagnostic systems, to Neogen Europe (the Scottish subsidiary of Neogen Corporation), realising a 2.3x money multiple return.
Lancashire-based Lab M is a leading provider of microbial testing and diagnostic products servicing the global food, water, industrial and clinical testing markets. Employing 35 staff at its facility in Heywood, Greater Manchester, the company’s wide range of dehydrated culture media is routinely used in microbiology laboratories around the world for food industry testing.
The original Lab M investment was made in 1998 backing the founder-chairman, Colin Goodwille, with funding for a small group of microbiology businesses acquired over the previous five years. Maven assumed responsibility for the investment when it took over the contract for Guinness Flight (now Maven Income and Growth 4 PLC) in 2008.
Since then Maven has worked alongside Colin Goodwille in supporting further development of the business through the acquisition of state-of-the-art manufacturing facilities, improved production management, and the appointment of Managing Director Ian Morris and Finance Director Paul Smith. These initiatives have had a transformational effect on the quality of Lab M’s products and customer base.
In recent years the business delivered consistently strong financial results, driven by sustained growth in existing markets, significant customer wins, and expansion into new territories.
Andrew Symmonds, Portfolio Manager at Maven said: "Lab M has grown into a significant producer of high quality products during the time of our investment, expanding into new markets, developing innovative new products and delivering significant growth. This sale, which has generated a healthy investor return, will allow the business to continue its growth strategy."