TIDMAPAX
RNS Number : 2038A
Apax Global Alpha Limited
22 September 2022
Apax Global Alpha Limited
Apax IX agrees to sell its stake in Authority Brands
The Apax IX Fund ("Apax IX"), in which AGA is a limited partner,
announced that it has signed a definitive agreement to sell
portfolio company Authority Brands, a leading US franchisor of
residential services. As part of this transaction, British Columbia
Investment Management Corporation ("BCI") will invest in consortium
with majority shareholder the Apax X Fund ("Apax X"). The purchase
price was established by an independent third-party valuation set
by BCI. The transaction is expected to close in Q4 2022, subject to
customary closing conditions.
The transaction values AGA's current look through investment in
Authority Brands at approximately EUR47m. This represents an uplift
of c.7% to last Unaffected Valuations(1) and an uplift of c.EUR3m
(c.EUR0.01 per share) in the Adjusted Net Asset Value ("Adjusted
NAV") of AGA at 30 June 2022.(2)
As AGA is also a limited partner in Apax X, on a look through
basis, AGA is expected to invest approximately EUR49m in the
company.(3) In July 2019, AGA made a commitment of c.$450m(4) to
Apax X.
Since the Apax Funds' initial investment in 2018, Authority
Brands has grown from two home service franchisors into the premier
home service franchisor in North America with 12 franchisors
currently, expanding into new geographies and services, and
building out a powerful infrastructure.
The new consortium intends to build on this success, backing a
scaled, market leading business with a large and stable addressable
market, which still has significant room for continued market share
capture and outperformance. The consortium will continue to partner
with the management team in the next phase of the company's journey
as they look to extend their platform through M&A, and
strategic initiatives including franchise development, technology
transformation, and international expansion.
"We could not be more pleased than to continue to build the
premier residential services franchisor in partnership with Apax
and BCI," said Craig Donaldson, Chief Executive Officer of
Authority Brands. "Both partners will add substantial value as we
aim to capture further share in the highly fragmented home services
market."
For more information about the transaction, please visit:
https://www.apax.com/news/press-releases/
Contact details
Investor Relations - AGA
Lorraine Rees
T: +447889 089 220
E: Lorraine.rees@apax.com
Footnotes
1 Unaffected Valuation is determined as the fair value in
. the last quarter before exit, when valuation is not affected
by the exit process (i.e. because an exit was signed, or
an exit was sufficiently close to being signed that the
2 Apax Funds incorporated the expected exit multiple into
. the quarter end valuation)
These figures relate to AGA's look through position of
Apax IX's overall investment in Authority Brands and are
stated before taking into account any closing adjustments
and translated based on Bloomberg closing rate of EUR/USD
FX rate on 19 September 2022 of 1.0024.
3. These figures relate to AGA's look through position of
Apax X's overall investment in Authority Brands and are
stated before taking into account any closing adjustments
and translated based on Bloomberg closing rate of EUR/USD
FX rate on 19 September 2022 of 1.0024.
4.
AGA's commitment in Apax X of c.$450m represents a commitment
of $225m in the Apax X USD tranche and EUR199.8m in the
Apax X euro tranche
Notes
1. Note that references in this announcement to Apax Global Alpha
Limited have been abbreviated to "AGA" or "the Company". References
to Apax Partners LLP have been abbreviated to "Apax Partners"
or "the Investment Adviser"
2. Please be advised that this announcement may contain inside
information as stipulated under the Market Abuse Regulations
(EU) NO. 596/2014 ("MAR")
3. This announcement is not for release, publication or distribution,
directly or indirectly, in whole or in part, into or within
the United States or to "US persons" (as defined in Regulation
S under the United States Securities Act of 1933, as amended
(the "Securities Act")) or into or within Australia, Canada,
South Africa or Japan. Recipients of this announcement in jurisdictions
outside the UK should inform themselves about and observe any
applicable legal requirements in their jurisdictions. In particular,
the distribution of the announcement may be restricted by law
in certain jurisdictions
4. The information presented herein is not an offer for sale within
the United States of any equity shares or other securities
of Apax Global Alpha Limited ("AGA"). AGA has not been and
will not be registered under the US Investment Company Act
of 1940, as amended (the "Investment Company Act"). In addition,
AGA's shares (the "Shares") have not been and will not be registered
under the Securities Act or any other applicable law of the
United States. Consequently, the Shares may not be offered
or sold or otherwise transferred within the United States,
or to, or for the account or benefit of, US Persons, except
pursuant to an exemption from the registration requirements
of the Securities Act and under circumstances which will not
require AGA to register under the Investment Company Act. No
public offering of the Shares is being made in the United States
5. This announcement may include forward-looking statements. The
words "expect", "anticipate", "intends", "plan", "estimate",
"aim", "forecast", "project" and similar expressions (or their
negative) identify certain of these forward-looking statements.
These forward-looking statements are statements regarding AGA's
intentions, beliefs or current expectations concerning, among
other things, AGA's results of operations, financial condition,
liquidity, prospects, growth and strategies. The forward-looking
statements in this presentation are based on numerous assumptions
regarding AGA's present and future business strategies and
the environment in which AGA will operate in the future. Forward-looking
statements involve inherent known and unknown risks, uncertainties
and contingencies because they relate to events and depend
on circumstances that may or may not occur in the future and
may cause the actual results, performance or achievements of
AGA to be materially different from those expressed or implied
by such forward looking statements. Many of these risks and
uncertainties relate to factors that are beyond AGA's ability
to control or estimate precisely, such as future market conditions,
currency fluctuations, the behaviour of other market participants,
the actions of regulators and other factors such as AGA's ability
to continue to obtain financing to meet its liquidity needs,
changes in the political, social and regulatory framework in
which AGA operates or in economic or technological trends or
conditions. Past performance should not be taken as an indication
or guarantee of future results, and no representation or warranty,
express or implied, is made regarding future performance. AGA
expressly disclaims any obligation or undertaking to release
any updates or revisions to these forward-looking statements
to reflect any change in AGA's expectations with regard thereto
or any change in events, conditions or circumstances on which
any statement is based after the date of this announcement,
or to update or to keep current any other information contained
in this announcement. Accordingly, undue reliance should not
be placed on the forward-looking statements, which speak only
as of the date of this announcement.
About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment
scheme incorporated as a non-cellular company that listed on the
London Stock Exchange on 15 June 2015. It is regulated by the
Guernsey Financial Services Commission.
AGA's objective is to provide shareholders with capital
appreciation from its investment portfolio and regular dividends.
The Company is targeting an annualised Total Return, across
economic cycles, of 12-15% (net of fees and expenses) including a
dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity
investments in Apax Funds, and Derived Investments which are
investments in equities and debt derived from the insights gained
via Apax Partners' Private Equity activities.
Further information regarding the Company and its publications
are available on the Company's website at
www.apaxglobalalpha.com.
About Apax
Apax Partners LLP ("Apax") is a leading global private equity
advisory firm. For nearly 50 years, Apax has worked to inspire
growth and ideas that transform businesses. The firm has raised and
advised funds with aggregate commitments of more than $60 billion.
The Apax Funds invest in companies across four global sectors of
Tech, Services, Healthcare and Internet/Consumer. These funds
provide long-term equity financing to build and strengthen
world-class companies. For further information about Apax, please
visit www.apax.com .
Apax is authorised and regulated by the Financial Conduct
Authority in the UK.
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