12 Jun 2017 10:00
BETTER CAPITAL PCC LIMITED 2009 Cell
12 June 2017
Gardner Aerospace Holdings Limited
Better Capital PCC Limited (the "Company") is pleased to announce that BECAP Fund LP (the "2009 Fund") has completed on the disposal of Gardner Aerospace Holdings Limited ("Gardner") to Ligeance Investments Limited, a wholly owned subsidiary of Shaanxi Ligeance Mineral Resources Co., Ltd. ("SLMR") for £326.0 million on an Enterprise Value basis.
Gardner is an award-winning leading Tier-1 supplier of detailed parts and added-value services to the global aerospace industry. The business was acquired by the 2009 Fund in February 2010 after failing to secure new investment to fund on-going losses. Under Better Capital's ownership, Gardner received injections totalling £41.0 million from the 2009 Fund, most of which has gone into funding bolt-on acquisitions and capital projects.
Headquartered in Derby, UK, Gardner now operates from ten manufacturing facilities across the UK, France, Poland and India and has an excellent reputation for delivery and quality. In the year ended 31 August 2016, the business reported turnover and EBITDA from continuing operations of £132 million and £24 million respectively.
SLMR is a diversified industrial group, listed on the Shenzhen Stock Exchange (market capitalisation of £1.3 billion - as at 9 June 2017) with significant mining reserves. The strategic acquisition of Gardner will enable SLMR to access a world class manufacturer of scale with a strong European customer base, and pursue its ambitions in the Aerospace/ Industrial Gas Turbine (IGT) sector.
The sale of Gardner has realised net proceeds to the 2009 Fund of £254.1 million, an uplift of £34.1 million/ 15.5 per cent. to the 2016 Interim Report valuation of £220.0 million, recording an IRR of 35.3 per cent. and 7 times money multiple on total investment of £41.0 million.
The Board intends to distribute £221.9 million (equivalent to approximately 107 pence per share) to the 2009 Shareholders by way of a compulsory partial redemption as soon as practicable. A further announcement will be made in due course.
Richard Crowder, Chairman of Better Capital PCC Limited, said: "On behalf of Better Capital, I would like to record my appreciation to all at Gardner for their contribution to this great success, and I wish Gardner and its new owner every success in its next phase of growth."
Enquiries:
Better Capital PCC Limited +44 (0) 1481 716 000
Laurence McNairn (Administrator and Company Secretary)
Better Capital LLP +44 (0) 20 7440 0840
Simon Pilling (Chief Executive Officer)
Rob Asplin (Managing Director)
Bonnie Kraus (Director of Finance and Investor Relations)
Powerscourt +44 (0) 20 7250 1446
Justin Griffiths
Numis Securities +44 (0) 20 7260 1426
Nathan Brown