In 2022 the Maven UK Regional Buyout Fund completed a profitable exit from McGavigan, via a sale to Canadian listed Plc CCL Industries Inc, generating a 3.0x return on the investment over a four-year hold period.
McGavigan develops and manufactures intelligent decorative assemblies for Tier 1 automotive firms, supplying components widely used by global brand car makers, including BMW, Mercedes-Benz, Nissan, Toyota and Volvo from its sites in the UK and China. The company’s product range includes touchscreen programable control panels and 3D display systems and is diversifying out to supply products to new sectors such as for the connected home.
Maven’s VCTs originally backed JML in 2010 to support its expansion plans, which included establishing a manufacturing facility in Suzhou, China. In December 2017 the Maven MBO Fund acquired a majority stake in the business, investing £10.25 million, which helped to provide a full exit for the Maven VCT shareholders.
As investors, Maven played a crucial role in this expansion with active involvement in supporting the new facility project in China and negotiating with the Chinese Government on the purchase of land. The Maven team made several trips to China as part of this process to support the management team with the expansion alongside a bolt on acquisition that was made in the region.
Since Maven’s buyout the senior management team continued to execute their strategic growth plan developed with the Maven team. The build project has proven successful, with a 20,000 sq. metre site in Suzhou fully operational. McGavigan opened the state-of-the-art manufacturing facility in China in 2020, to help position the business for future growth and strategic expansion. The facility allows the business to develop a wide range of new products and diversify the client base with new customers in complementary sectors. The international reach of the business grew further through an acquisition in China, cementing McGavigan as a truly global business with operations in both Europe and Asia.
We are immensely proud of what our team has achieved, especially our successful expansion in China. It is important to highlight this success has been underpinned throughout our journey over the past 10 years by the collaborative relationship we have built with the Maven team. They have proven not only to be an important source of growth capital, but as genuine partners who have helped us navigate this journey and showcase the value collaborative private equity can achieve.
Steve Mathers, Commercial Director of McGavigan
