Autoclenz: An uninhibited Autoclenz diversifies for success

Source: Stock Market Digital

Date :06/12/2007 09:38:33

Since joining the Alternative Investment Market (AIM) last year, Autoclenz is now a recognised and respected name in the motor vehicle retail, franchised dealership, rental and distribution sectors.

Written by James Hurley & Produced by Kiron Chavda

A company that can rely on a broad business base for its stability and extensive service offering, the Autoclenz group, based near Burton on Trent, has grown to encompass seven brands, each dedicated to serving its own sector, supported by its own management team with extensive geographical and product knowledge.

These brands cover consumer and trade valeting and vehicle preparation services (Autoclenz, Pinnacle and AC Volume Car Preparation), minor vehicle repairs (ACSMART), car valeting and preparation for the rental market (AC Ready to Rent), contract labour recruitment for the automotive industry (ALS) and REACT, specialists in deep cleaning and decontamination.

Expanding the business

Autoclenz’s history stretches back to the 1960’s, and over time it has seen a number of changes within its market and its business, including an ownership change.

In the late 1980’s Autoclenz went into receivership. It was subsequently purchased by Yule Catto & Co plc, a Harlow based niche chemicals group in 1989. At the end of 2005, as part of Yule Catto's corporate strategy of reshaping its performance chemicals activities, it sold the business to Autoclenz Holdings for £18 million.

The sale and re-financing deal used the ‘accelerated IPO route’, a rarely used structure comprising a share acquisition and a public flotation where the acquisition is funded by a combination of debt and the proceeds of an issue of shares from the flotation. The deal was conditional on the Admission of the shares of Autoclenz Holdings plc to trading on AIM which was successfully achieved on 7 December 2005. “The flotation has given us the opportunity to expand the business and drive it in different ways…

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