TIDMHGT
RNS Number : 8747G
HgCapital Trust PLC
01 June 2017
HgCapital Trust adds to NAV per share from sale of Parts
Alliance
1 June 2017: HgCapital, the Manager of HgCapital Trust plc (the
"Company"), has announced that it has agreed the sale of Parts
Alliance, a UK automotive aftermarket parts distributor, to
Uni-Select Inc., a listed Canadian distributor of automotive
refinish and industrial paint products and aftermarket parts for a
transaction value of GBP205 million.
The sale of Parts Alliance delivers a c. 2.0x investment
multiple and a c. 19% gross IRR over the investment period.
The Company, whose shares are listed on the London Stock
Exchange, gives private and institutional investors the opportunity
to participate in all HgCapital's investments. The Company will
realise cash proceeds of approximately GBP21.3 million on
completion of this transaction. This represents an uplift of GBP6.7
million (46%) or 18 pence per share over the carrying value of
GBP14.6 million in the Net Asset Value ("NAV") of the Trust at 30
April 2017 which was based on the Directors' valuation as at 31
December 2016.
Based on the pro-forma 30 April 2017 reported NAV, (including
the impact of the revaluation of the carried interest provision),
the pro-forma NAV of the Trust is expected to be GBP613.5 million
(or 1,643.7 pence per share). The Company's liquid resources
available for future deployment including all announced
transactions are estimated to be GBP136 million (22% of the
pro-forma 30 April 2017 NAV). In addition, the Company has access
to a GBP80 million standby facility, which is currently
undrawn.
HgCapital announces sale of Parts Alliance to Uni-Select
Inc.
-- Thirteenth realisation from HgCapital 6 Fund, delivering a c.
2.0x investment multiple and c. 19% gross IRR
-- HgCapital has returned over GBP1.5 billion to clients over
the last twelve months with eight exits and multiple portfolio
re-financings since the Brexit vote
-- Third realisation by HgCapital in the last 5 months,
delivering an aggregate investment multiple of 2.9x
1 June 2017: HgCapital is pleased to announce that it has agreed
the sale of Parts Alliance, a UK automotive aftermarket parts
distributor, to Uni-Select Inc., a listed Canadian distributor of
automotive refinish and industrial paint products and aftermarket
parts, for a transaction value of GBP205 million.
HgCapital initially invested in Parts Alliance in August 2012.
Over the course of the investment period, the group has expanded
through a series of HgCapital-led acquisitions in the space,
ultimately creating a broader group of thirteen parts distributors
(ten of which are owned by Parts Alliance), with a combined group
turnover of c.GBP450 million. Customers range from independent
garages to multi-branch workshops and fast-fits, and they are
served by a fleet of over 1,000 vehicles and more than 2,900 staff
across the group membership.
The enlarged group is now one of the largest players in the
sector, which helped to materially increase Parts Alliance's appeal
to both European and North American buyers seeking a scale,
platform asset to enter the UK aftermarket car parts sector.
The realisation of Parts Alliance represents the thirteenth
realisation from the HgCapital 6 Fund (2009), which has now
delivered overall realised returns of 2.3x and a 24% gross IRR. The
Fund has now returned in cash 130% of the original investment made.
This sale follows the successful exits of Zenith (2.9x / 47% IRR)
and QUNDIS (3.5x / 30% IRR) which completed earlier this year, and
a number of further realisations from HgCapital 6 are anticipated
over 2017.
Martin Block, Partner, HgCapital, said: "We are delighted with
the sale of this very special business to Uni-Select. They will be
a fantastic partner for the next phase of Parts Alliance's
continued growth and development. As a buy and build in a
fragmented and dynamic sector, our management team were able to
create a business of scale and real capability through their drive,
professionalism and determination. Parts Alliance brings together a
high-quality group of distinct brands with a common culture and
local identity. We wish both the team and the new owners every
success for the future."
Peter Sephton, CEO at Parts Alliance commented: "This has been a
fantastic journey, building a sector leader in just over 4 years
with 10 acquisitions and driving above average organic growth. I
and our management team would like to thank HgCapital for all their
support as I and our 2,900 colleagues look forward to continuing
that journey with Uni-Select, helping build a great international
auto parts business together with the Uni-Select leadership
team."
Henry Buckley, President and CEO at Uni-Select Inc. added "We
are excited to establish a third growth pillar in the large UK
parts aftermarket, one of the most fragmented in Europe, with
significant potential for consolidation. Parts Alliance is a great
organization, with a market leadership position, a proven growth
platform and an experienced management team that has demonstrated
its ability to drive profitable growth both organically and through
acquisitions. Our two companies are a perfect fit in terms of
business profile, customer focus, entrepreneurial culture and
commitment to people development."
HgCapital were advised by Baird and White & Case LLP
- Ends -
For further details:
HgCapital
Laura Dixon +44 (0)20 7089 7888
Maitland
Seda Ambartsumian +44 (0)20 7379 5151
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange (ticker: HGT.L). The Company is
a client of HgCapital, giving investors exposure to a portfolio of
high-growth private companies, through a liquid vehicle. New
investments and existing portfolio companies are managed by
HgCapital, an experienced and well-resourced private equity firm
with a long-term track record of delivering superior risk-adjusted
returns for its investors. For further details, please see
www.hgcapitaltrust.com.
Neither the contents of HgCapital Trust's, HgCapital's, Parts
Alliance's, nor Uni-Select Inc.'s websites nor the contents of any
website accessible from hyperlinks on the websites (or any other
website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCOKDDPKBKDQAK
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June 01, 2017 06:57 ET (10:57 GMT)
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