Better Capital News

Acquisition and fundraising announcements

  • Sale of Gardner Aerospace // 12 June 2017

    Better Capital PCC Limited (the "Company") is pleased to announce that BECAP Fund LP (the "2009 Fund") has completed on the disposal of Gardner Aerospace Holdings Limited ("Gardner") to Ligeance Investments Limited, a wholly owned subsidiary of Shaanxi Ligeance Mineral Resources Co., Ltd. ("SLMR") for £326.0 million on an Enterprise Value basis. 

    Gardner is an award-winning leading Tier-1 supplier of detailed parts and added-value services to the global aerospace industry.  The business was acquired by the 2009 Fund in February 2010 after failing to secure new investment to fund on-going losses.  Under Better Capital's ownership, Gardner received injections totalling £41.0 million from the 2009 Fund, most of which has gone into funding bolt-on acquisitions and capital projects. 

    Headquartered in Derby, UK, Gardner now operates from ten manufacturing facilities across the UK, France, Poland and India and has an excellent reputation for delivery and quality.  In the year ended 31 August 2016, the business reported turnover and EBITDA from continuing operations of £132 million and £24 million respectively.

    SLMR is a diversified industrial group, listed on the Shenzhen Stock Exchange (market capitalisation of £1.3 billion - as at 9 June 2017) with significant mining reserves.  The strategic acquisition of Gardner will enable SLMR to access a world class manufacturer of scale with a strong European customer base, and pursue its ambitions in the Aerospace/ Industrial Gas Turbine (IGT) sector.  

    The sale of Gardner has realised net proceeds to the 2009 Fund of £254.1 million, an uplift of £34.1 million/ 15.5 per cent. to the 2016 Interim Report valuation of £220.0 million, recording an IRR of 35.3 per cent.  and 7 times money multiple on total investment of £41.0 million. 

    The Board intends to distribute £221.9 million (equivalent to approximately 107 pence per share) to the 2009 Shareholders by way of a compulsory partial redemption as soon as practicable.  A further announcement will be made in due course. 

    Richard Crowder, Chairman of Better Capital PCC Limited, said: "On behalf of Better Capital, I would like to record my appreciation to all at Gardner for their contribution to this great success, and I wish Gardner and its new owner every success in its next phase of growth."

  • Sale of Intertain // 7 December 2016

    Better Capital has sold iNTERTAIN Limited to Stonegate Pub Company for an enterprise value of £39.5m.

    Stonegate is one of the UK's largest managed pub companies, with 662 sites nationwide.

    The 2012 Fund acquired the group in November 2014 and has successfully restructured and invested in the business, returning it to being profitable and cash generative.  The deal represents a good exit at a c24% IRR.

    We wish iNTERTAIN’s ongoing team and new shareholders success in the business’s next phase.

  • 2009 Fund in exclusive discussions to sell Gardner // 16 November 2016

    Better Capital PCC today announced that the 2009 Fund has entered into exclusive discussions with Shaanxi Ligeance Mineral Resources Co. Limited ("SLMR") for the sale of its interest in Gardner Aerospace Holdings Limited ("Gardner").

    The purchase price offered by SLMR of £326 million on an Enterprise Value basis reflects the business's continued strong performance.  

    The proposed transaction remains subject to certain legal and other conditions and to regulatory and other approvals and will be presented to Gardner's works council in France imminently, as is required under French law.

    SLMR is a company headquartered in China and listed on the Shenzhen Stock Exchange.  It is the ultimate parent company of a group whose current main activity is mineral exploration and production, but whose interests include a growing aerospace machining and component manufacture division.

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  • Sale of Santia to Alcumus // 2 December 2015

    The 2009 Fund today sold Santia for £47 million to Alcumus Holdings Limited, an investee company of Inflexion Private Equity. 

    It has owned the group since early 2011, when it was acquired from the administrators of Connaught Plc. The investment generated a money multiple of 2.8 times and an internal rate of return of 26%.

    We wish Santia's ongoing team and new shareholders success in the business's next phase. 

     

Latest information

News: Sale of Gardner Aerospace

News: Sale of Intertain