Matrix injects £6m into Crewe care care firm

A CREWE-based company which provides service plans to the motor trade has been sold by its founder to a management buy-out team.

EMaC has been sold by founder Michael Smyth to a management team led by Angela Barrow and backed by Matrix Private Equity Partners, which has invested £6m into the business.

The company employs 55 people and manages more than 350,000 service plans for 1,000 car dealers across the country.

Service plans allow new car owners to fix the cost of servicing their vehicles for the first two-to-three years of its lifespan and to spread the cost over monthly payments.

EMaC provides a web-based system for car dealers to keep track of customers’ service plans. It also collects payments and generates online reports for customers.

The company said that backing from Matrix would allow it to develop new platforms and products.

Barrow said: “Having been at the helm of the business for the last 8 years, I am genuinely excited by the opportunity to lead the business forward to our next level of growth.

“We have the experience, energy, resources and above all people to make an even greater positive impact for our automotive customers.  

Matrix Private Equity partner Ashley Broomberg said: “EMaC is a high quality business with very strong growth drivers.

“Only 2% of the UK car parc is currently under a service plan and we expect this to increase significantly in the future.

“In the current economic environment, consumers are keen to fix their outgoings, whilst motor retailers increasingly understand the importance of focusing on after-sales opportunities.”

Baker Tilly and Irwin Mitchell advised Michael Smyth on the sale, while Matrix was advised by Grant Thornton, Wragge & Co, Armstrongs and Charteris.