Catalyst diagnoses £46 million SMBO for Autologic

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SMBO success for Autologic

Catalyst has advised ISIS Equity Partners on the £46 million Secondary Management Buy-Out (SMBO) of Autologic Diagnostics Holdings Limited (Autologic).

Autologic is one of the fastest growing vehicle diagnostic services company in the world. Founded in 1999, the business operates from headquarters in Wheatley, Oxfordshire with offices in New York and Hong Kong. The company's diagnostic equipment allows independent workshops to service leading car brands. As vehicles have become increasingly sophisticated and technically complex, mechanics need to be able to communicate with on-board computers to diagnose and fix faults, making diagnostic equipment essential to the repair and servicing of modern day vehicles.

In 2009, Kevin Finn (Executive Chairman) and Peter Toland (Managing Director) joined Ian Jones (Technical Director) in a Buy-In Management Buy-Out (BIMBO) backed by VCT funds controlled by Foresight and mezzanine funding from funds controlled by Octopus. Following this investment the company’s turnover has growth significantly from £6.2 million in 2009 to £14.2 million in 2011. The new investment by ISIS will support the business in its continued overseas expansion, building on the international distributor network where there is significant potential for further growth.

The management team led by Executive Chairman Kevin Finn, Managing Director Peter Toland and Technical Director Ian Jones, is rolling over a significant portion of value into Newco alongside ISIS. Foresight is realising part of its investment but also rolling over value into Newco, while Octopus Ventures will exit in full.

Catalyst led by Head of Industrials Mark Humphries, supported by Paul Vanstone and James Guglia advised ISIS and Newco on this transaction. Mark Humphries commented, "Management were keen to complete the deal within a very short timeframe to ensure they focussed on Autologic’s growth opportunities and not get diverted by a deal process. To that end, following our appointment as the advisor to Newco, we were able to balance the commercial aspirations of all stakeholders with the need to complete the deal in the minimal time possible."