Close Venture make 2.9x return on exit

Close Venture Management (CVM) has sold Automotive Technik (Holdings) Limited in a £25m deal with Stewart & Stevenson Services, a US corporation manufacturer of specialty equipment for the oilfield, defence, and power generation industries.

The sale earned CVM £8.7m after transaction costs, a 2.9x return on the investment made. A further £600,000 is payable if certain conditions are met. Three CVM funds invested in Automative: Close Brothers Development VCT (CBDVCT), Close Technology & General VCT (CBT&GVCT) and Bamboo Investments Plc.

Automative is a British company that produces the Pinzgauer all-terrain vehicle. CBDVCT and CBT&GVCT first invested in the business in July 2002 to fund the set-up of the vehicle. Bamboo Investments joined the two funds when they collectively invested £1.85m during 2003 and 2004.

Since 2002 Automative’s turnover has risen from £3m to £25m. It has grown from making six vehicles a month with 50 people to making eight vehicles a week and employing 130 people.