YFM exit GTK generating a 3.4x return and a 36% IRR

19 December 2018

Sale to strategic trade buyer delivers strong returns to YFM


Funds advised by YFM Equity Partners (“YFM”) have exited their investment in GTK Limited for £14.3m, to Volex Plc, generating a return of 3.4x original cost to their funds and a 36% IRR.

YFM supported the incumbent management team in the primary buyout of GTK from its founder in October 2013.  During the 5 years YFM have been invested revenues have grown over 60% and profits have more than doubled.   The growth has been driven by continued investment in the UK sales team, the opening of a new sales office in Germany, a near doubling of manufacturing capacity in the UK and the opening of a new manufacturing facility in Romania in 2016.

John Morath, CEO at GTK, added: “GTK has grown tremendously since the MBO driven by a continued investment in sales reach, operational capabilities and international expansion.   It has been a great journey to go on with YFM who have been the supportive partner that they said they would be.”

Jamie Roberts, Partner who led the investment for YFM, said: “We have really enjoyed working with John and his team at GTK over the last 5 years and it is great to have been part of another UK manufacturing success story.  The GTK management team are typical of the sort of people we like to back at YFM and we are pleased to see them continue on their journey with Volex.”

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