(Alliance News) - Caledonia Investments PLC on Thursday said it has bought a majority stake in the European division of AIR-serv, comprised of Airvending Ltd and AIR-serv Netherlands BV.
The London-based investment trust confirmed talks of the AIR-Serv acquisition in mid-April.
Headquartered in Wigan, Lancashire, AIR-serv Europe is a leading designer and manufacturer of air, vacuum and jet wash machines.
It has over 200 employees, operates from nine offices and serves about 2,5000 customers, Caledonia noted. It also has around 20,000 machines installed across more than 15,000 customer locations in the UK and Ireland, the Benelux, France, Germany and Spain.
"The acquisition underlines Caledonia's strategy of investing in quality, robust, well-established private companies, with proven management teams, and seeking long-term growth," Caledonia explained.
The company said that it has subscribed GBP142.5 million for a 99.8% equity stake in the business, alongside a GBP500,000 investment from the management team for the remaining equity. The balance of the purchase price will be financed from bank debt facilities totalling GBP60.0 million.
Caledonia's Head of Private Capital, Tom Leader, said:"The strength and consistency of AIR-serv Europe's profitability, cash generation and market position are an ideal fit with our Private Capital investment strategy. We believe there are exciting opportunities to build further on the Business' excellent record and to expand its European presence."
Shares in Caledonia Investments were up 0.8% to 3,593.68 pence each in London on Thursday morning.
By Sophie Rose, Alliance News reporter
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Caledonia (CLDN)