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(Alliance News) - Duke Royalty Ltd said Friday it invested a further GBP2 million into existing royalty partner Lynx Equity (UK) Ltd to fund the acquisition of Sundby Trapper.
In May, Lynx acquired Danish steel staircase maker Sundby Trapper.
The additional GBP2 million investment will take its investment in Lynx to GBP12 million. Following this, Duke will be entitled to a higher GBP1.6 million per year distribution from Lynx - equivalent to a 13.0% yield on total invested capital. These higher distributions will begin later in November.
"We are delighted to deliver further portfolio diversification and income through the rapid deployment of proceeds raised from our recent fundraise," Duke Chief Executive Officer Neil Johnson said. "Lynx UK has a strong track record of financial performance which has facilitated two consecutive positive annual adjustments and, when consolidating its five wholly owned businesses, represents one of our largest Royalty Partners by revenue and Ebitda"
"This contribution further highlights our track-record of being a flexible and long-term funding partner for businesses in the UK, Europe and abroad", Johnson added.
Shares in Duke were 0.5% higher at 44.00 pence in London on Friday.
By Ahren Lester; ahrenlester@alliancenews.com
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