Company: Fairline Yachts, RiverRock
Business Type: Boat Builder
UK & International Business Sales and M&A News
RiverRock European Opportunities Fund II has acquired the majority stake in UK boatbuilder Fairline Yachts.
RiverRock has been a partner of Fairline for the last 11 months, after the introduction of a £15m cash facility that was agreed in August 2019. At the time it was stated that this capital investment would be used to accelerate Fairline’s exciting product development agenda.
The recent capital investment programme is aimed at securing the financial future of the business following the coronavirus pandemic.
Igor Glyanenko and Alexander Volov, the two Russian investors who bought Fairline Boat’s assets in January 2016 after the company collapsed, will maintain a financial interest in Fairline Yachts, and Fairline’s statement says that Glyanenko and Volov welcome the investment from RiverRock. The businessmen will now focus on their core businesses which have been substantially impacted by both the Covid-19 pandemic and the oil price drop of recent months.
Fairline, with its HQ in Oundle, recently announced it would be making more than 50% of its workforce redundant due to the downturn caused by the coronavirus pandemic, but the investment will allow the boatbuilder to continue its product development programme.
Fairline COO Peter McNulty commented:
“By taking a majority stake in the business, RiverRock is demonstrating its continued support and confidence in Fairline. The investment secures our financial future and ensures we can continue the roll-out of our long-term strategic plan for the brand.
“As announced previously, the company has made some tough decisions to right-size the business as a result of the current extremely challenging market conditions. This has better positioned the company and aligns it more closely with our strategic plans both in terms of product and regional growth. The new investment from RiverRock provides us with the capital and execution ability we needed to fulfil these long-term growth plans.
“The coronavirus pandemic has put additional pressure on all businesses and RiverRock’s investment means we can continue our exciting and highly innovative new product development programme, which is critical for the sustained growth of the business and to meet our discerning buyers’ requirements.”
Peter McNulty - Fairline COO
Fairline COO Peter McNulty
RiverRock has offices in London, Paris, Milan and Madrid, and is looking forward to the future with Fairline.
Jason Carley, senior portfolio manager at RiverRock, adds:
“We are pleased to take the next step on our partnership journey with UK boatbuilder Fairline Yachts. We firmly believe in the team at the helm and the strength of the brand.
“We appreciate Alex and Igor’s significant investment over the last four years and our additional investment will now support Fairline to grow and will enable the company to keep doing what it does best – building exquisitely designed, hand crafted boats made in Great Britain.”
Jason Carley - Senior Portfolio Manager at RiverRock
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