Matrix Backs MBO of EMaC Limited

In its second investment this year in the motor trade, Matrix Private Equity Partners (Matrix) has invested £6 million alongside Managing Director Angela Barrow to provide growth capital and support for the management buyout of EMaC Limited.

EMaC Limited is the UK’s leading provider of outsourced Service Plans made available to car buyers through the motor retail sector. Service Plans allow consumers to fix the cost of servicing a vehicle for a two to three year period and generally spread the cost of servicing into monthly payments, avoiding periodic lump sum payments at the time of the service. These plans, which are interest free, provide an easy way for consumers to budget for the correct servicing programme, aiding safety, reliability and economy.

Service Plans are seen as key customer retention tools for the retail motor sector. As a specialist outsourcing company, EMaC works with motor retailers providing web-based technology enabling them to sell Service Plans to their customers. EMaC then provides full administrative support through the lifetime of the agreement on behalf of the retailer, collecting payments and providing online reconciliation and reporting.

Based in Crewe, EMaC employs 55 people and currently manages over 350,000 plans for over 1,000 retailers in the UK. With support from Matrix, EMaC plans to accelerate the development of new platforms and products, in particular its core Service Plan specialism and across wider support services for the motor retail market.

The deal was completed by Ashley Broomberg of Matrix who comments: “EMaC is a high quality business with very strong growth drivers. Only 2% of the UK car parc is currently under a service plan and we expect this to increase significantly in the future. In the current economic environment, consumers are keen to fix their outgoings, whilst motor retailers increasingly understand the importance of focusing on after sales opportunities. Earlier this year we invested in Motorclean, which provides valeting services to retailers, and we believe that many retailers will continue to outsource non-core activities as they look to improve performance and profitability.”

Angela Barrow, Managing Director of EMaC comments: “Having been at the helm of the business for the last 8 years, I am genuinely excited by the opportunity to lead the business forward to our next level of growth.  We have the experience, energy, resources and above all people to make an even greater positive impact for our automotive customers. The success of the business has been based upon deep industry insight, a capacity to work closely with customers, the energy to innovate and plenty of hard work. Our customers can expect to see all of these attributes and more as we work to build the EMaC business further.”

The shareholder of the company was advised by Hamish Morrison and Andy Haigh of Baker Tilly who originated the transaction, and Paul Johnson, Corporate Partner at Irwin Mitchell. Matrix was advised by Andy Stylianou of Wragge & Co (Legal), Jonathan Steed of Grant Thornton (Financial), Tom Raymond of Armstrongs (Commercial) and David Sharp of Charteris (Technology). Banking facilities are being provided by Ross Lumsden of Yorkshire Bank. Paul Johnson, Corporate Partner at law firm Irwin Mitchell, advised management.

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Issued by Mobeus Equity Partners LLP, of 30 Haymarket, London SW1Y 4EX, registered in England & Wales number OC320577, authorised and regulated by the Financial Conduct Authority, number 456538. This material is for information only and does not constitute an offer to buy or sell an investment nor does it solicit any such invitation. The information contained in this email is believed to be accurate at the date of publication but no representation or warranty stated or implied is made or given by any person as to its accuracy or completeness and no responsibility or liability is accepted for any such information or opinion.

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