Electra Partners today announces the sale of its interest in MPS, the abattoir equipment supplier.
Based on exchange rates at the date of transaction, Electra's investment in MPS generated a 46% IRR and a return of 1.9x original cost in under two years. Electra is due to receive net proceeds of £34 million which represents an uplift of 16p per share from the value of its holding in MPS at 31 March 2010.
Based in the Netherlands and employing 500 people worldwide, MPS is the global leader in the development, production and installation of abattoir equipment. Since Electra's investment, profits have grown by over 35% on the back of continued geographic expansion into emerging economies, increased food safety concerns and the global industrialisation of agriculture.
In October 2008, Electra invested €21 million in MPS as part of its €36 million acquisition of a 51% limited partnership interest in Steadfast Capital Fund I. The investment was made during the peak of the recent financial crisis and underlines Electra Partners' ability to extract value throughout the economic cycle as a result of its flexible investment strategy.
The sale of MPS follows Electra's announcement on 29 July 2010 that its interest in Thermocoax, a leading manufacturer of customised thermal solutions and temperature measurement systems, had also been sold. Electra received proceeds of £12.3 million from the sale of its interest in Thermocoax generating a return of 2.8x original cost on its investment in just under four years.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC ("Electra").