Electra Private Equity PLC (“Electra”) today announces that it has agreed to sell its interest in Capital Safety Group (“CSG”) to KKR. The total value of the deal is approximately US$1.1 billion. CSG is one of the world's leading manufacturers of fall protection, confined space and rescue equipment.
Completion, which is expected in January 2012, is conditional and subject to regulatory clearances, amongst other things.
Subject to completion, Electra is expected to receive proceeds in the region of £54 million based on today’s exchange rates. This would represent an uplift of £28 million or 104% on the valuation of CSG, inclusive of accrued income, at 31 March 2011. Electra is due to announce its results for the year ended 30 September 2011 on 6 December 2011.
Electra originally invested £30 million when it led the £98 million buyout of Capital Safety Group in 1998. A refinancing was put in place in 2005 where Electra realised £65 million and re-invested £20 million in the equity and mezzanine of the business. In 2007, Electra sold CSG to Candover (renamed Arle Capital Partners) in a US$565 million secondary buyout with Electra realising gross proceeds of £113 million and reinvesting £18 million to retain a 10% stake in the business in order to benefit from the growth forecast in the fall protection market. Following the initial investment of £30 million, CSG has generated net proceeds over thirteen years of £195 million for Electra; an IRR of 23%.
David Symondson, Deputy Managing Partner of Electra Partners, the Manager of Electra Private Equity PLC, said:
“Capital Safety is a fantastic business that we have been proud to support for the last thirteen years.
“Thanks to Electra’s flexible investment mandate, which allows a long-term view on investments, we have been able to develop Capital Safety from a regionally focused company into the global brand leader it is today. This is a perfect example of Electra Partners’ ability to support the international growth aspirations of leading businesses.”
This is the third sale Electra has agreed in the last two months following the sale of both specialist credit card provider SAV Credit and heating treatment products manufacturer BDR Thermea.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
For David Symondson:
Kate Ruck Keene, M:Communications +44 (0)20 7920 2322
Monique Dumas, Investor Relations Partner, Electra Partners +44 (0)20 7306 3911
Note to Editors:
About Electra Private Equity PLC
Electra Private Equity PLC is an investment trust listed on the London Stock Exchange since 1976. Electra’s objective is to achieve a rate of return on equity of between 10-15% per annum over the long term by investing in a portfolio of private equity assets. Over the ten years to 31 March 2011 Electra achieved a diluted net asset value increase of 128%, compared to an increase of 13% for the FTSE All-Share Index.
For further information please visit www.electraequity.com.
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years experience in the mid-market buyout sector. As at 31 March 2011, the firm had funds under management of £1.2 billion. The firm’s flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners typically seeks to invest in the region of £40 to £100 million of equity, in deals of up to £300 million enterprise value.
Electra Partners manages the funds of its major client Electra Private Equity PLC and Electra Partners Club 2007 LP, a fund raised in 2008 for the sole purpose of investing alongside Electra in controlled investment situations.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Services Authority.
About Capital Safety Group (“CSG”)
Capital Safety Group is one of the world’s leading manufacturers of fall protection, confined space and rescue equipment.
With 50 years of history, CSG sells fall protection equipment under the DBI-SALA and Protecta brands for use by people working at height. Its products are used by workers across a number of sectors such as oil and gas, telecommunications and construction.
CSG is headquartered in the UK and operates across North America, EMEA and Asia Pacific with manufacturing facilities in Canada, USA, France and Australia.