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Close windowAIR-serv Europe (“AIR-serv”) is a leading designer and manufacturer of air, vacuum and jet wash machines which it provides as turn-key solutions to fuel station forecourt operators across Western Europe. The Business has over 200 employees, operates from nine offices, and serves c.2,500 customers with c.20,000 machines installed across more than 15,000 customer locations in the UK and Ireland, the Benelux, France, Germany and Spain.
Background
Founded in 1984, AIR-serv has developed a respected brand which represents product innovation and exceptional customer service. The business had operated as an independent division of US based CSC ServiceWorks (“CSC”) since CSC acquired the Business, alongside the North-American AIR-serv operations, in 2013.
In 2023 Caledonia acquired AIR-serv in a carve-out from CSC, partnering with Clive Steel (CEO) and his executive team to support the next stage of the company’s development.
Investment thesis
We were successful in acquiring AIR-serv in a competitive auction process based on our deliverability, speed of execution and a strong alignment between Caledonia’s approach and what the executive management team were looking for;
- A “buy to own”, rather than “buy to sell” investment philosophy;
- A supportive shareholder who was excited to back management’s plan;
- Robust capital structure with modest leverage and ability to provide significant follow-on capital; and
- Full flexibility and influence over exit timeframe.
Our investment thesis is to back AIR-serv, Clive Steel and his executive team to:
- Drive revenue growth in the machine estate through utilisation and NPD;
- Deliver machine volume growth in Europe and further penetrate the UK jet wash market;
- Enter new attractive European markets;
- Invest in its central functions, governance and management information to create a robust platform for growth as a standalone business; and
- Proactively seek upside opportunities, including strategic M&A.
Investment Date:
April 2023
Investment Status:
Current
Business Description:
Business Services
Investment Type:
Carve-out, primary MBO; majority
Initial equity investment
£142.5mLatest Caledonia NAV:
£170m (as at March 2024)
Caledonia Private Capital Team:
Chris Hodges, Theo Tizard
Related Press Releases:
CEO Perspective
“I am delighted to welcome Caledonia as AIR-serv Europe's new equity sponsor. With Caledonia's financial support, flexibility and long-term investment horizon, I am confident that we can build on the Business' reputation for product quality, technical capability and customer service to take advantage of the significant growth potential in our chosen markets.”
Clive Steel, CEO, Apr-23