Portfolio Update - Exit - Sale of portfolio company TFC Europe Limited
June 29 2022 - 10:13AM
Portfolio Update - Exit - Sale of portfolio company TFC Europe
Limited
Foresight VCT PLC
LEI: 213800GNTY699WHACF46
Exit: Sale of portfolio company TFC
Europe to AFC
Industries delivers 12.6x
cash-on-cash return for Foresight VCT and other funds managed by
Foresight Group
The Board of Foresight VCT Plc (the “Company”) is pleased to
announce the sale on 29 June 2022 of portfolio company TFC Europe
Limited (“TFC”), a leading European supplier of technical fasteners
and wave springs, to AFC Industries Inc. (“AFC”), which provides
inventory management solutions including a wide range of fasteners
alongside technical service support to customers in North America.
AFC is a portfolio company of Bertram Capital, a private equity
firm based in California.
The transaction generated proceeds of £10.3 million at
completion. When added to £1.5m of cash returned to date, this
implies a total cash-on-cash return of 12.6 times the original
investment, equivalent to an IRR of 23% since the initial
investment in 2007. Following the sale of Codeplay Software
Limited, announced on 6 June 2022, and the dividend of 4.5p per
ordinary share paid on Friday 24 June 2022, the Company’s NAV per
ordinary share stood at 88.1p, to which this sale will add 0.7p,
giving a pro forma NAV per ordinary share of 88.8p.
Since the original investment, the manager, Foresight Group, has
taken a proactive approach to supporting TFC, helping to extend its
network in the UK and Germany. TFC also rapidly expanded its vendor
managed inventory service, growing the customer base, so it now
provides a market-leading service to SMEs and international global
brands operating across a range of industries. Foresight Group
supported three acquisitions as well as considerable investment in
new and existing facilities, opening new sites in England, Northern
Ireland and Czech Republic.
Throughout the COVID-19 pandemic, TFC continued to invest in its
organic growth strategy, ensuring it was well positioned to deliver
best in class service to its customers. This approach positioned
TFC for its current period of rapid growth.
Margaret Littlejohns, who chairs Foresight VCT
Plc said: “TFC has been a great success story for the
Company and our shareholders. We are delighted that Foresight Group
has been able to make such a positive contribution to the growth of
the business and we wish TFC continued success.”
ENDS
For Information Contact
Gary Fraser, Foresight Group: 02036678100
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