TIDMCLDN
RNS Number : 3004A
Caledonia Investments PLC
01 June 2021
CALEDONIA INVESTMENTS PLC
CALEDONIA PRIVATE CAPITAL SELLS DSE
Caledonia Investments plc ("Caledonia") is pleased to announce
that its portfolio company Deep Sea Electronics ("DSE"), a leading
provider of backup power control systems, has been acquired by
Generac Holdings Inc. ("Generac"). Generac is listed on the New
York Stock Exchange (NYSE: GNRC) and is a leading global designer
and manufacturer of energy technology solutions and other power
products.
DSE was acquired by Caledonia in October 2018 and has grown
strongly since then. It has secured a larger share of core target
markets having developed and launched power control products in
load-sharing and synchronisation; successfully captured adjacent
market opportunities with new products in off-highway control; and
is addressing the control needs of a growing number of customers
seeking distributed power solutions enabled with intelligence and
data capture. Throughout the partnership with Caledonia, DSE has
been led by Chief Executive David Thomson who will retain overall
responsibility for DSE following the sale, under the direction of
Patrick Forsythe, Generac's Chief Technical Officer.
Caledonia will receive net proceeds of c.GBP242.2m in cash, net
of fees, for the sale of its 84.2% fully diluted stake. The cash
proceeds will be held on deposit for future investment. DSE was
held in Caledonia's audited accounts as at 31 March 2021 at
GBP193.0m.
Commenting on the sale, Duncan Johnson, Caledonia's Head of
Private Capital, said:
"Caledonia's Private Capital strategy is to invest in leading UK
businesses with high quality management teams, and DSE and Dave
Thomson have embodied this. We are delighted with what DSE has
achieved under our ownership, having encouraged focused investment
in both short- and long-term growth initiatives, whilst maintaining
strong alignment with Dave and his team. We thank and congratulate
Dave and the DSE team for their stewardship of DSE during our
partnership and wish them all every success under their new
ownership."
David Thomson, Chief Executive of DSE, commented:
"Caledonia has been a fantastic partner both for me and for DSE,
providing board level support, long-term thinking and constructive
challenge over the past two and a half years. Caledonia has helped
me to lay the foundations for DSE's future growth by strengthening
my team, supporting investments in new products and channels to
market, and positioning DSE strategically for emerging
opportunities in renewable/ distributed power and microgrid
generation. We have forged ahead despite the Covid-19 pandemic and
I am incredibly excited about a new era of partnership with
Generac."
1 June 2021
For further information contact:
Caledonia Investments
plc
Will Wyatt,
Chief Executive
Tim Livett,
Chief Financial Officer +44 20 7802 8080
Duncan Johnson,
Head of Private Capital
Media contact:
Tulchan Communications
Tom Murray, Lizzie
Snow +44 20 7353 4200
This announcement contains inside information relating to
Caledonia.
END
Notes for editors:
Caledonia Investments
Caledonia is a self-managed investment trust company listed on
the London Stock Exchange with net assets of GBP2.2bn as at 31
March 2021. The company maintains a concentrated portfolio of
international quoted, private, and fund investments and has paid an
increasing annual dividend for 54 years.
In the Private Capital arena Caledonia typically seeks to invest
GBP25m to GBP125m in privately owned companies based in the UK,
either on a majority or minority basis, where Caledonia provides
enduring capital and support to investee company management teams
over the longer term. The Caledonia Private Capital portfolio
includes 7iM (a provider of discretionary fund management, asset
management and self-invest platform services), Stonehage Fleming (a
multi-family office providing fiduciary and investment management
services to UHNW clients and families), Cobehold (a European
unquoted investment house), Cooke Optics (a UK manufacturer of
premium cinematography lenses), and Liberation Group (a Channel
Islands and South West England integrated pub and brewing
business).
For additional information on Caledonia Private Capital, please
visit www.caledoniaprivatecapital.com and for Caledonia please
visit www.caledonia.com .
Deep Sea Electronics
Based in the UK, DSE is one of the world's leading designers and
manufacturers of controllers for backup electricity generators and
intelligent battery chargers. Its products are used globally to
support public sector infrastructure projects as well as diverse
applications across industry sectors, including oil and gas,
telecommunications, construction, power distribution and facilities
management.
Founded in 1975, DSE has been led by Managing Director David
Thomson since 2012. It is headquartered in Hunmanby, Yorkshire
where all its products are manufactured, and has a design team
based in Mansfield, Nottinghamshire. DSE employs over 160 people
and with teams on the ground in North America, the Middle East and
India operates globally selling to over 150 countries, both direct
and through a comprehensive distributor network.
For additional information on DSE, please visit
www.deepseaelectronics.com .
Generac Holdings Inc (NYSE: GNRC)
Founded in 1959, Generac is a leading global designer and
manufacturer of a wide range of energy technology solutions and
other power products. As an industry leader serving residential,
light commercial, and industrial markets, Generac's products and
solutions are available globally through a broad network of
independent dealers, distributors, retailers, e-commerce partners,
wholesalers and equipment rental companies, as well as sold direct
to certain end user customers.
For additional information on Generac, please visit
www.generac.com .
Transaction
The sale of DSE was led by Chris Hodges and Theo Tizard for
Caledonia.
GCA Altium (Stuart Warriner and Andy Battersby) and Taylor
Wessing (Ed Waldron and Jonny Bethell) respectively provided
corporate finance and legal advice to Caledonia.
Neither the contents of Caledonia's, DSE's or Generac's
websites, nor the contents of any website accessible from
hyperlinks on such websites (or any other website) is incorporated
into, or forms part of, this announcement.
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END
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