TIDMHGT
RNS Number : 8894N
HgCapital Trust PLC
14 May 2018
Hg, the Manager of HgCapital Trust plc ("the Company"), today
announces the sale of JLA to Cinven. The terms of the transaction
were not disclosed.
The sale of JLA delivers a c. 4.9x investment multiple and a c.
26% gross IRR over the investment period.
The Company, whose shares are listed on the London Stock
Exchange, gives private and institutional investors the opportunity
to participate in all Hg's investments.
This transaction values the Company's investment in JLA at
approximately GBP34.2 million. This would represent an uplift of
GBP7.7 million (29%) over the carrying value of GBP26.5 million in
the Net Asset Value ("NAV") of the Company at 30 April 2018.
Based on the 30 April 2018 reported NAV (including all
transactions announced to date and the resulting revaluation of the
carried interest provision), the pro-forma NAV of the Trust is
expected to be GBP719.0 million (or 1,926.2 pence per share). The
Company will realise estimated cash proceeds of approximately
GBP4.8 million on completion of this transaction, after allowance
for a payment of carried interest to the Manager. The Company's
liquid resources available for future deployment (including all
announced transactions) are estimated to be GBP150 million (21% of
the pro-forma 30 April 2018 NAV). In addition, the Company has
access to a GBP80 million standby facility, which is currently
undrawn.
Hg agrees sale of JLA to Cinven
- Sale of JLA delivers 4.9x return to the Hg6 Fund (2009 vintage).
- JLA more than doubled in size during Hg investment,
successfully developing new product categories and significantly
growing total employment.
- 17(th) exit from Hg6 to-date and the 5(th) exit from Hg in 2018.
14 May 2018 - Hg today announces the sale of JLA, a UK sector
leader for critical assets solutions in the commercial laundry,
catering, heating and fire safety markets, to Cinven.
The closing of the transaction is subject to regulatory approval
and the terms are not disclosed.
JLA provides equipment, supply and services solutions across
commercial laundry, catering, heating and fire safety to customers
across the UK, primarily through its 'Total Care' offering. Total
Care provides customers with a hassle-free solution for running
critical areas of their business, minimising downtime and
maximising peace of mind for business owners.
Hg's Services team invested in JLA at the beginning of 2010,
identifying JLA as a 'hidden champion' services business. JLA
displays best-in-class services characteristics: stable and
predictable revenue streams, growth from both existing and new
customers, and a wide customer base with high customer satisfaction
levels.
Since 2010, in addition to the organic development of new
product offerings in the Catering, Heating and Fire Safety markets,
JLA has successfully completed 16 bolt-on M&A transactions.
During this time the business has more than doubled in size, with
employment increasing from 310 to 900 across the UK.
Thorsten Toepfer and Joris Van Gool, Hg, said: "JLA has been a
strong performing business, displayed by its 25 year-on-year
unbroken growth track record. Hg has supported management to enable
this growth during our 8-year investment period, including a
variety of operational projects covering new product development,
digital marketing and acquisitions. Hg's investment returns have
been driven by the combination of impressive revenue and EBITDA
growth, as well as accretive M&A delivered by a world-class
management team. We have really enjoyed working with the JLA team
and we wish them well as they continue their success."
Stephen Baxter, CEO of JLA, said: "JLA has enjoyed an incredibly
successful period during our partnership with Hg. The operational
projects we have undertaken together have proved valuable, whilst
the M&A activity has helped expand and diversify our services.
We look forward to working with Cinven, who we're confident will
help us maintain this momentum and continue JLA's future
growth."
The sale of JLA will deliver an overall return to Hg6 clients of
4.9x original cost, generating a gross IRR of 26%. The realisation
of JLA represents the 17(th) exit from Hg6 to-date and the 5(th)
exit from Hg in 2018.
Advising on the transaction were Baird (Corporate Finance),
Deloitte (FDD), Skadden (Legal), EY-Parthenon (CDD).
For further details:
Hg
Laura Dixon +44 (0)20 7089 7888
Maitland
Vikki Kosmalska and Seda Ambartsumian +44 (0)20 7379 5151
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange (ticker: HGT.L). The Company is
a client of Hg, giving investors exposure to a portfolio of
high-growth private companies, through a liquid vehicle. New
investments and existing portfolio companies are managed by Hg, an
experienced and well-resourced private equity firm with a long-term
track record of delivering superior risk-adjusted returns for its
investors. For further details, please see www.hgcapitaltrust.com
.
Neither the contents of Hg's, HgCapital Trust's, Cinven's, JLA's
websites 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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