10 Sep 2010 15:27
BETTER CAPITAL LIMITED 10 September 2010
ACQUISITION
Better Capital Limited (the "Company") is pleased to announce that Better Capital Fund LP (the "Fund") has completed the acquisition of the trade and assets of certain subsidiaries of Calyx Holdings Limited (the "Calyx Group"). The investment follows the acquisition of the bank debt of the Calyx Group, which the Company announced on 3 September 2010.
The acquisitions of the trade and assets of the Calyx Group's three UK business divisions and the Irish software division have been effected by special purpose vehicles, which are wholly owned and controlled by the Fund.
The acquired businesses provide IT outsourcing, telecommunication carrier services and software solutions to their customers.
The unaudited accounts of the businesses acquired, which are yet to be verified, show the aggregate unaudited revenues for the businesses acquired (for the year to 31 December 2009) were £65.0 million, and the businesses generated a combined operating profit (pre-exceptional items) of £1.3 million. Additionally, the unverified and unaudited accounts of the Group for the year to 31 December 2009 show a net asset position relating to the acquired businesses of £4.0 million.
The trade and assets of certain UK subsidiaries of the Group were acquired from the Joint Administrators, being Geoffrey Rowley and Phillip Armstrong of FRP Advisory LLP. The trade and assets of certain Irish subsidiaries of the Group were acquired from the Receiver, Tom Kavanagh of Kavanagh Fennell.
The Fund committed £17.0 million to finance the debt acquisition, the purchase of the business and assets and to fund the restructuring and working capital requirements.
Nick Sanders and Sean Cooper, members of Better Capital LLP (which provides consultancy services to Better Capital Fund's general partner), will join the boards of the acquisition vehicles.
Enquiries:
Better Capital Limited +44 (0)1481 716 000
Mark Huntley (Director)
Laurence McNairn (Administrator and Company Secretary)
Better Capital LLP +44 (0)20 7440 0840
Jon Moulton (Chairman)
Numis Securities Limited +44 (0)20 7260 1000
Nathan Brown
Simon Blank