Electra Private Equity PLC (“Electra”) today announces that it has sold its interest in luxury flooring manufacturer Amtico Group (“Amtico”) to US trade buyer Mannington Mills, Inc.
Electra will receive total proceeds of £35.5 million of which £24 million has been received today with the balance expected by 31 March 2012. This realisation will give rise to an uplift in diluted NAV per share of 36p from the value of Electra’s holding in Amtico at 30 September 2011.
Electra originally invested £17 million in Amtico's management buyout from Courtaulds in 1995. Amtico is led by CEO Jonathan Duck who was appointed by Electra following the retirement of his predecessor in 2003. In 2006, the company was sold to AAC Capital UK with Electra reinvesting part of its sale proceeds in a minority equity holding and providing the mezzanine debt.
Over the 16 years of its investment, Electra has generated total proceeds of £74.5 million, a multiple of 4.4x original investment and a compound IRR of 14% per annum.
Tim Syder, Deputy Managing Partner of Electra Partners, the Manager of Electra Private Equity PLC, said:
“We are pleased to have been long-term investors in Amtico. This transaction demonstrates Electra’s uniquely flexible investment mandate which allows us not only to take a long-term view, supporting management through more than one phase of growth, but also offers the freedom to invest across the capital structure.”
This is Electra’s fifth transaction since the beginning of December 2011 comprising the
£45 million acquisition of term debt facilities in Park Resorts, the realisation of its interests in Capital Safety Group for £56 million, the repayment of its mezzanine debt instruments in Volution (Vent-Axia) and the agreement to sell its interests in CPA Global for proceeds in the region of £30 million.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
For Tim Syder:
Kate Ruck Keene, M:Communications +44 (0)20 7920 2322
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
30 September 2011 Electra achieved a diluted net asset value per share increase of 168%, 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 30 September 2011, the firm had funds under management of over £1.3 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.