Dunedin Ent.it. Regulatory News (DNE)

27 Jun 2007 07:00

Dunedin Enterprise Inv Trust PLC27 June 2007 The following is the text of a press release issued by Dunedin Capital PartnersLtd ("Dunedin") which manages the investment portfolio of Dunedin EnterpriseInvestment Trust PLC. The Dunedin Enterprise Investment Trust, which is a listed investment trustgiving investors the opportunity to invest in all of Dunedin's investments, willinvest approximately £2.9 million in Fernau Avionics Limited. 27 June 2007 DUNEDIN LEADS £16 MILLION BUYOUT OF FERNAU AVIONICS Dunedin, the BVCA Private Equity House of the Year, has backed the managementbuyout of Fernau Avionics ("Fernau"), a world-leading designer and manufacturerof Navigational Aids to the civil and military aviation markets in the UK,Europe, North America and the Far East. The management buyout will enable theprevious owners, Glendale International, the quoted Canadian company, to focuson its other business interests. Dunedin invested £8 million for a significantmajority equity stake. "Having made significant investment in R&D, Fernau has a reputation forproviding products with the highest technical standards in the market. This hashelped the company secure important new contracts with blue chip customersincluding civil aviation authorities and military users. An ageinginfrastructure around the globe means Fernau is in a good position to benefitfrom the continuing and necessary upgrade to the installed base of NavigationalAids. "Dunedin takes a partnership approach to its investments and will be workingclosely with the management team to develop the business through organic growthand to make acquisitions that will take Fernau into new markets to better serveexisting customers and to develop new customers." commented John Hudson, thedirector who led the deal for Dunedin. Navigational Aids are primarily fixed, ground-based installations which transmita series of radio signals which allow pilots to navigate safely and efficientlyand gain accurate location information. The equipment is owned and maintained bygovernment and national bodies as it is safety-critical and security-critical.For example the 2020 DME (Distance Measuring Equipment) advises the pilot thedistance to an airport or waypoint. Virtually all airports in the UK useFernau's DME due to its high reliability and ease of operation. A military version of this equipment, which can also transmit bearinginformation, is known as a TACAN (Tactical Air Navigation). The 2010 TACAN is incurrent service with several Nato countries and has recently been deployed inthe USA. Fernau also manufactures a ruggedised mobile version of the 2010 whichcan be rapidly deployed in under 30 minutes making it an indispensable piece oftactical equipment for todays modern military forces. Customers include the MoD, SAIC (for the US airforce), Nav Canada and Avinor (astate owned Norwegian company that owns and operates 46 airports all over thecountry, 14 in association with the armed forces and responsible for air trafficcontrol services). Kevin Kearns, Managing Director of Fernau, believes that the company ispositioned well for future growth: "Over the last two years we have signed majorcontracts with new customers in both the North American and European markets. Weare focused on building upon these successes by producing innovative products ofthe highest reliability backed up with first rate customer support." Dunedin has appointed Allen Standley as Non Executive Chairman. Allen hasconsiderable experience within the electronics industry, having held a number ofhigh profile positions, including the role of Chairman and Chief Executive ofVida Group, and Non-Executive Chairman of Walker Dickson Group. Dunedin's BrianScouler and Andrew Pickup have also joined the board. Fernau employs 70 people from its Luton base. Founded in 1970, the company hassold over 1,000 navigational systems which are installed throughout the world.In addition to the design and manufacture of Navigational Aids, Fernau providesassociated services including site survey, installation, system commissioning,training, spares and repairs, and logistics support. Fernau's products meet theincreasing demands for greater reliability, performance and control. Advisors: • Mat Bhagrath, Amish Bakhai and Ashish Patel from Grant Thornton provided buy side advice to Dunedin on the acquisition; • Simon Sale, Nadim Meer and Neil Skennerton from Dundas and Wilson provided legal advice to Dunedin and Newco; • Rebecca Guerin from Vantis undertook Financial Due Diligence • Mark Jeynes from Parthenon completed Commercial Due Diligence -ENDS- For further information, please contact: Equity Dynamics Jane Kirby 07825 326 441 Corinna Vere Nicoll 07825 326 440 EDITORS NOTES About Dunedin (www.dunedin.com). Contact Ross Marshall, Chief Executive, 0131225 6699, 07768 794 180 ross.marshall@dunedin.com Dunedin provides equity finance for management buyouts and management buyinswith a transaction size of £10 million - £75 million. It is an independentprivate equity house, owned by the directors and staff, operating throughout theUK from offices in Edinburgh and London. Dunedin was voted the 2007 BVCA & Real Deals "Private Equity House of the Year"and the 2006 Unquote "Small Buyout House of the Year". In 2006, it raised a new £250 million buyout fund which was significantlyoversubscribed. It also manages the quoted private equity investment trust,Dunedin Enterprise Investment Trust PLC. Dunedin invests in established companies in the following sectors: constructionand building materials, consumer products and services, financial services,healthcare, leisure, specialist manufacturing and support services. During the past 18 months, Dunedin made new investments in Capula, etc.venuesand WFEL and successfully realised investments in Letts Filofax, CaledonianBuilding Systems, Celtic Inns, Home & Legacy Insurance, Travel & GeneralInsurance, Davenham, Portman Travel and Zenith Vehicle Contracts. The new fund gives Dunedin the firepower to invest up to £50 million of equityin a deal allowing it to focus on buyouts of up to £75 million enterprise valueand then to pursue buy and build and roll-out opportunities. About Fernau Avionics (www.fernau.com) Contact Kevin Kearns, Managing Director:01582 748603 Email: kevin.kearns@fernau.com Fernau Avionics is a leading supplier of Navigational Aids to the internationalcivil and military market. Fernau designs, manufactures and markets its productsfrom its base in Luton. In 2006 sales increased by over 20% with operatingprofits doubling, profits have increased each year since 2001. Exports typicallyaccount for 90% of revenues. In addition to the products mentioned above Fernau manufactures high precisionDF (Direction Finding) systems for the military and civil markets. The 2010 DFis used for surveillance purposes and for emergency search and rescue.Operations. The DF is widely deployed in the UK, Europe and the Middle East. Fernau's latest product is a PLB (Personal Locator Beacon) designed to be wornby military pilots to aid their rescue after ejection from their aircraft. TheFernau 2100 features built in GPS to ensure high accuracy and also a transmittercapable of communicating with a satellite so that its signal can be locatedanywhere on Earth. The 2100 has recently been sold in Europe and the Far Eastand is the only fully approved military beacon on the market today. This information is provided by RNS The company news service from the London Stock Exchange