(Alliance News) - Caledonia Investments PLC on Tuesday said it has sold its 84% interest in Deep Sea Electronics to US-based power generator manufacturer Generac Holdings Inc.
The sale will net Caledonia GBP242.2 million in cash for its 84% fully diluted stake. Yorkshire, England-based Deep Sea Electronics, was valued at GBP193.0 million in Caledonia's accounts on March 31. The proceeds from the sale will be used for future investments.
The London-based investment trust Caledonia first acquired the battery charger and diesel-powered generator manufacturer in October 2018 for GBP117.2 million.
"Caledonia has been a fantastic partner both for me and for [Deep Sea] providing board level support, long-term thinking and constructive challenge over the past two and a half years. Caledonia has helped me to lay the foundations for [Deep Sea]'s future growth by strengthening my team, supporting investments in new products and channels to market, and positioning [Deep Sea] strategically for emerging opportunities in renewable/distributed power and microgrid generation. We have forged ahead despite the Covid-19 pandemic and I am incredibly excited about a new era of partnership with Generac," said David Thomson, chief executive of Deep Sea.
Shares in Caledonia Investments were up 2.2% at 3,095.00 pence in London on Tuesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Caledonia (CLDN)