Farleys recently represented tyre manufacturer DMACK in a private equity deal worth £3.5 million. Carlisle-based tyre manufacturer DMACK secured the investment to help fund the next stage of its high growth business. Private equity managers Maven made the investment to support DMACK’s boost in manufacturing, allowing it to increase the range and production capacity for road and motorsport tyres.
DMACK was formed in 2006 by managing director Dick Cormack initially to design and produce high performance motorsport tyres. In 2011 it was one of just two tyre manufacturers, alongside Michelin, authorised to supply tyres to the FIA World Rally Championship.
This investment will allow DMACK to significantly increase its road range by investing in new tyre moulds and the firm aims to have 100 sizes of car and truck tyres on offer by the end of 2014. It also plans to move into other motorsport disciplines. Currently it has over 120 motorsport tyre products and a dealer network covering 72 countries, however, DMACK now plans to enter the rally raid, trackday and circuit racing markets with a range of exciting new products.
The global tyre market is currently valued at c$90bn per annum, and forecast to grow by a further 50% by 2017, leaving DMACK well-placed to achieve further significant growth in the coming years.
Advised by Corporate Partner Debbie King, the transaction was completed by Maven’s Glasgow-based investment team.
Dick Cormack, managing director at DMACK said:
“With a robust brand and unique range of products, DMACK has achieved enviable growth over the last three years. The investment by Maven will provide us with the support needed to boost our range of consumer and specialist motorsport tyres, delivering the platform to enter new markets during this significant stage of development. Maven took a keen interest from the start and their support will really help DMACK’s next stage of business and facilitate sustainable revenue and growth.”
Commenting on the legal advice provided by Farleys, Dick Cormack said:
“Farleys have handled all our legal requirements for the past 5 years, this year we sold 30% of the company and Farleys were able to handle the whole deal from start to finish, offering a great service and advice along the way, I would highly recommend Farleys to any of my business contacts”.
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