Electra Partners announces US$85 million reinvestment in Allflex

POSTED 18 July 2013

Electra Partners is pleased to announce that, following today’s successful completion of the sale of Allflex Holdings (“Allflex”) to funds advised by BC Partners for US$1.35 billion, a reinvestment has been made in the company.

Electra Private Equity PLC (“Electra”) has reinvested US$85 million (£57 million) in the new buyout vehicle established by BC Partners to acquire Allflex. Electra will hold a minority stake of 15% in Allflex with David Symondson retaining his seat on the Board. 

Electra first invested in Allflex in 1998 in the US$160 million buyout of the company. Over the 15 years of Electra’s ownership, Allflex has seen strong organic and acquisitive growth driven by increased focus on food chain traceability and mandatory regulations controlling the spread of animal diseases. The business was refinanced a number of times prior to the US$1.35 billion sale to funds advised by BC Partners. To date, the investment has generated a gross return of 15x original cost (including income) for Electra over the 15 years; an IRR of 28%.

David Symondson, Deputy Managing Partner at Electra Partners, said:

“Our decision to sell Allflex was a result of the increasingly dominant position it occupied in Electra’s portfolio. Allflex’s consistent profits growth had contributed significantly to Electra’s NAV growth and it had become our largest investment. Furthermore, with BC Partners as majority shareholder alongside Electra, Allflex now has the financial firepower to consider further expansion by acquisition.

“We are therefore delighted to be reinvesting in Allflex given our successful history with the company. Allflex has a significant market presence in over 50 countries, a high quality management team and an excellent reputation. 

“As the global population expands, the increasing demand for meat and dairy traceability will be of huge benefit to Allflex. We look forward to participating in the further growth of the business.”

David Symondson, Rhian Davies and Chris Hanna are responsible for the investment in Allflex. 

This is the fifth investment Electra Partners has announced this year following the acquisitions of Allen & Heath, AXIO Data Group, the EP I Secondary Portfolio and the co-investment in CALA Group.

Electra Partners refers to Electra Partners LLP acting on behalf of Electra Private Equity PLC. 

Ends

For further information please contact:

For David Symondson:
Charlotte McMullen, M:Communications                   +44 (0)20 7920 2349
Andrew Kenny and Nicholas Board, Electra Partners    +44 (0)20 7306 3932