HgCapital Trust plc will participate in the acquisition of a majority stake in Qundis Group ("Qundis") alongside other institutional clients of HgCapital. The Trust, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all HgCapital's investments. The Trust will contribute a total of approximately £11.8 million.
Based on the 31 March 2012 NAV, adjusting for the impact of the dividend payable in May 2012 and this transaction, liquid resources (including a £40 million undrawn loan facility) are estimated to be £72.4 million (20.6% of the 31 March 2012 NAV). The transaction will reduce the Trust's outstanding commitments to HgCapital funds to £179.8 million.
HgCapital announces investment in Qundis Group
HgCapital, the European sector-focused private equity investor, has today announced the acquisition of Qundis Group ("Qundis"), Germany's foremost provider of submetering devices and systems for consumption-dependent billing of heat and water. HgCapital will acquire the company from financial investor Capcellence and Qundis management team, pending approval by the antitrust authorities. The Qundis management team will reinvest a substantial portion of their stake as part of the transaction.
Qundis was created in 2008 by the merger of QVEDIS (previously part of Siemens) and KUNDO SystemTechnik. Headquartered in Mühlhausen, the company has approximately 220 employees and currently provides submetering systems to a highly fragmented customer base of approximately five million flats and offices across Europe.
The acquisition of Qundis represents a continuation of HgCapital's sector-driven investment strategy, which seeks to partner with market-leading industry champions. Qundis has grown strongly in recent years, despite the challenging economic backdrop, as the demand for energy-saving solutions remained strong.
Alongside its market leading position in Germany, Qundis has extensive distribution in Italy with further coverage in Slovenia, the Czech Republic, France, Turkey and Russia, and HgCapital plans to support Qundis' management team in expanding across these geographies.
Richard Binnig, Managing Director of Qundis said:
"This is an exciting time for the company; with its entrepreneurial approach and strong financial background, HgCapital provides a solid foundation for Qundis to continue to develop our specialist technological capabilities to the benefit of new and especially our existing customers. We will continue to be a strong partner to our submetering service provider customers. We look forward to working closely with HgCapital to drive forward the continued expansion of the business both domestically and internationally."
Commenting on the acquisition, Justin von Simson, Head of HgCapital's Industrials team and its Munich office, stated: "The combination of a strong management team that has successfully developed the Qundis business model internationally, alongside its outstanding technological expertise and excellent customer relationships makes Qundis a very attractive company to partner with. In applying our specialist knowledge of the industrials sector, we are keen to back innovative companies within high growth markets and feel there is considerable potential for Qundis to continue to grow its business across Europe."
HgCapital was advised in this transaction by Macquarie Capital Germany, Clifford Chance, The Boston Consulting Group and Deloitte.
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For further details:
HgCapital Richard Bold +44 (0)20 7089 7943
Maitland Neil Bennett +44 (0)20 7379 5151
Rowan Brown +44 (0)20 7379 5151
Duncan Browne +44 (0)20 7379 5151
HgCapital is a sector expert private equity investor, supporting management teams to grow industry champions. Deeply resourced sector teams focus on specific sub-sectors and investment themes to identify companies occupying an established position within a niche, which have the potential to grow faster than their market, create employment and become the leader in their industry. HgCapital's dedicated portfolio management team provides practical support to management teams to help them realise their growth ambitions. HgCapital invests in expanding segments of the Healthcare, Industrial, Services, TMT and Renewable Energy sectors across Western Europe.
Based in London and Munich, HgCapital manages over £3.7 billion for some of the world's leading institutional and private investors. For further details, please see www.hgcapital.com.
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange (ticker: HGT.L). The Trust 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. The Trust has won the Investment Week Private Equity Investment Trust of the Year every year since 2005. For further details, please see www.hgcapitaltrust.com
Neither the contents of HgCapital's, HgCapital Trust's nor Qundis' website 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.
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