Electra Private Equity PLC (“Electra”) is pleased to announce that it has agreed to sell its interest in ventilation systems manufacturer Nuaire to Polypipe Group plc, a London Stock Exchange-listed manufacturer of plastic piping systems. The total value of the deal is approximately £145 million.
The Sale and Purchase agreement anticipates completion taking place during August.
On completion of the transaction, Electra will receive proceeds of approximately £72 million. This will represent an uplift of £24 million, or 50% on the valuation of Nuaire at 31 March 2015, implying an increase in diluted NAV per share of 49p. Inclusive of income and proceeds from a refinancing, this will generate a return of 3.8x on original cost; an 18% IRR.
Headquartered in Caerphilly, Wales, Nuaire is a leading UK-based manufacturer and designer of ventilation equipment for commercial and residential applications. The company's innovative products help clients reduce their energy consumption and carbon emissions. Electra originally invested £23 million in the management buyout of Nuaire in 2007.
Charles Elkington, a Partner at Electra Partners, said:
“In 2007 we saw an opportunity for regulatory-driven growth in the ventilation market. With our backing, Nuaire has invested strongly in new product development and successfully expanded its customer base, particularly in the residential market. The result of this has been an 80% increase in revenues and a 120% increase in profits for the business which has generated a strong investment return for Electra.”
Alex Fortescue, Chief Investment Partner at Electra Partners, said:
"Nuaire is another great example of the benefits of Electra's flexible investment mandate, namely the ability to hold for the long-term. When the construction market softened during the financial crisis, we were able to adjust our timing horizons and help management to continue to grow and develop the business which they have done extremely effectively. We wish Mark Huxtable and his team well for this new phase under Polypipe's ownership."
The shareholders of Nuaire were advised by KPMG Corporate Finance and Taylor Wessing.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
Andrew Honnor and Matthieu Roussellier, Greenbrook Communications +44 (0)20 7952 2000
Andrew Kenny and Nicholas Board, Electra Partners
+44 (0)20 7306 3932