Case Study: Muc-Off Limited
- Deal size:
- Development capital
- Deal completed:
- September 2014
Meridian Corporate Finance (“Meridian”) assisted Muc-Off Limited (“Muc-Off”) to secure almost £2m in new financing to support its expansion plans.
The Poole-based bike care brand business has received £850,000 in growth capital investment and £1.1m in debt finance as part of Santander's 'Breakthrough' programme.
It is now planning to create five new posts with the funding. Muc-Off was founded in 1991 by Alex Trimnell and his late father Rex who invented a cleaning fluid which did not damage anodised bicycle components.
This original 'pink fluid' was launched in 1994 and remains one of the company's most popular selling products.
Muc-Off has since widened its range and now sells 140 specialist products for bicycles, motorbikes and cars including cleaners, lubricants, waxes, dry shower and rider care kits.
It has completed the development of its product range and is now focusing on increasing sales and marketing with the new funding to be used to recruit staff and invest in marketing, particularly within the road bike market.
Alex Trimnell, Managing Director of Muc-Off said: "This is an exciting time for us. The recent successes of Chris Frome and Bradley Wiggins in the Tour de France and 2012 Olympics, along with a renewed emphasis on health and exercise, have seen a jump in the popularity of cycling as a sport and hobby.
"As a result we are seeing an increase in demand and feel that now is the right time for us to be taking advantage of this upward trend."
Darren Hart, head of growth capital at Santander Corporate & Commercial, added: "It is great to be able to support a successful and innovative company like Muc-Off.
"We know that this type of Growth Capital investment can be a lifeline to small businesses looking to expand without giving up a slice of their company."