HgCapital announces intended sale - Mondo Minerals (5400J)
July 01 2011 - 2:00AM
UK Regulatory
TIDMHGT
RNS Number : 5400J
HG Capital Trust PLC
01 July 2011
HgCapital intends to sell its investment in Mondo Minerals once
it has completed the required employee consultation obligations.
Upon the sale, which is anticipated to complete in the next four
months, HgCapital Trust plc, the listed investment trust which
invests in all HgCapital's deals alongside its institutional
clients, expects to initially realise estimated cash proceeds of
GBP13.7 million and a further amount of up to GBP2.8 million over
the next two years. This compares to a carrying value of GBP13.5
million in the Net Asset Value (NAV) of the Trust at 31 May 2011
and an original cost of GBP7 million.
Set out below is the text of a press release issued today by
HgCapital.
HgCapital announces the intended sale of Mondo Minerals
London, 1 July 2011: HgCapital has today announced the intended
sale of Mondo Minerals ("Mondo"), the world's second largest talc
producer, to Advent International Corporation, subject to carrying
out the required employee consultation obligations. HgCapital
originally invested in Mondo in 2007 and the sale is anticipated to
complete in the next four months.
Mondo is a leading international producer of high-performance
talc with a leading European market position. The Company is the
supplier of choice for paper, paints and coatings and plastics
applications and also has a growing presence in a range of niche
end-markets including ceramics, food and personal care.
The sale of Mondo will represent HgCapital's fifth realisation
over the last twelve months leading to an anticipated return for
these five realisations of approximately 3.2x combined gross
original cost and an IRR of c. 24%. HgCapital has clearly
demonstrated with this transaction and other divestments since the
start of the credit crunch in September 2008 that it can generate
strong risk-adjusted returns across the economic cycle.
During HgCapital's period of ownership, Mondo has delivered
EBITDA growth of approximately 50% and increased employee headcount
by 12% despite challenging trading conditions throughout the
recession. This performance provides another example of HgCapital's
commitment to investing in platform businesses with the potential
for growth and performance improvement.
Since 2007, HgCapital has actively supported Mondo's management
in implementing a number of initiatives including: repositioning
the business with a strong focus on high-margin end-markets;
broadening its geographic footprint into markets outside Northern
Europe; refocusing the commercial offering on direct sales to
customers; enhancing the processing capabilities; and optimising
the Company's cost structure.
Commenting on the realisation, Joachim Drees, a Partner at
HgCapital, stated: "Working closely with the management team
HgCapital has helped Mondo achieve strong operational and financial
performance over the last three years despite the global recession.
The business has delivered significant growth, strong cash
conversion rates and has an excellent platform for future
growth."
Nic Humphries, CEO of HgCapital, said: "Mondo is a good example
of how HgCapital can make a significant contribution to the
development of a niche business with significant global potential.
Growth opportunities exist in Asia and in South America and the
business already has a clear strategy to maximise these new
markets."
HgCapital is advised in this transaction by Lazard & Co.,
Limited, Millington Advisory Partners and Clifford Chance.
- Ends -
For further details please contact:
HgCapital: Joachim Drees +44 (0)20 7089 7940
Maitland: Neil Bennett +44 (0)20 7379 5151
George Hudson
Rowan Brown
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange. The Trust is a client of
HgCapital, giving investors exposure to a portfolio of high-growth
private companies, through a liquid vehicle. New investments and
existing portfolio companies are managed by HgCapital, an
experienced and well resourced private equity firm with a long-term
track record of delivering superior risk-adjusted returns for its
investors. The Trust has won the Investment Week Private Equity
Investment Trust of the Year in 2005, 2006, 2007, 2008, 2009 and
2010. For further details, please see www.hgcapitaltrust.com
About HgCapital
HgCapital is a private equity investor focused on the European
middle market. Its business model combines sector-specific thematic
investing with dedicated portfolio management support. HgCapital
seeks to invest in growth companies in expanding sectors which
create jobs across Western Europe.
HgCapital is also an investor in renewable energy, establishing
itself as a market leader by building a dedicated energy investment
team in 2004. It continues to invest a dedicated fund in a range of
renewable power technologies across Western Europe.
HgCapital manages over GBP3.4 billion for some of the world's
leading institutional and private investors. For further details,
please see www.hgcapital.com.
About Mondo Minerals
Mondo is a leading international producer of high-performance
talc with a leading European market position. The Company is the
supplier of choice for paper, paints and coatings and plastics
applications and also has a growing presence in a range of niche
end-markets including ceramics, food and personal care.
Headquartered in Amsterdam, the Company has c.200 full time
employees across its operations in Finland, the Netherlands and its
sales teams worldwide. Further information on Mondo is available at
www.mondominerals.com
Neither the contents of HgCapital's or Mondo's website nor the
contents of any website accessible from hyperlinks on the websites
(or any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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