Last checked at 25 Feb 2022 07:00
25 February 2022
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
Follow-On Investment into Existing Royalty Partner
Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to announce a follow-on investment of £1.5 million into its existing royalty partner Lynx Equity (UK) Ltd. ("Lynx UK").
Highlights:
· Lynx UK will use this contribution from Duke to acquire Danish equipment manufacturer, Obel-P Automation A/S ("Obel-P"), which was agreed earlier this month |
· This is Lynx UK's eighth acquisition completed within the UK and Europe and Duke's follow-on investment further diversifies both Duke's portfolio and Lynx UK's revenue and EBITDA base |
· The financing increases Duke's total investment into Lynx UK to £15.0 million and marks the realisation of the initial financing commitment as its preferred European capital partner as announced in October 2017 |
· All other terms of the £1.5 million contribution are the same as Duke's previous investment made into Lynx UK |
Neil Johnson, CEO of Duke Royalty, said:
"Since 2017, Lynx UK has continued to find long-standing, profitable private businesses that meet our shared criteria for investment. Our near five-year partnership for expanding into Europe has been a collective success for Lynx UK, the businesses owners they acquire, Duke and our shareholders.
"Lynx Equity Limited, based in Canada, has acquired over 50 companies in the last 15 years and has revenues of over C$500 million (£300m), which speaks to their success and the scale of the opportunity. Brad and his team were our first royalty partner deploying a buy-and-build strategy. Their strong financial track record is due to a keen focus on acquiring profitable 'old world' companies at a reasonable multiple, which aligns with Duke Royalty's royalty criteria."
Brad Nathan, President of Lynx Equity Limited, said:
"We looked at various funding sources when we set up our European operation and felt that Duke's long dated capital perfectly suited our expansion plans in this new geography. Since then, the partnership has worked very well and I am delighted that we have now completed our eighth acquisition using Duke's capital. We look forward to maintaining and expanding the close relationship that we have built with Duke over the last four years."
About Obel-P
Founded in 1954, Obel-P's is an equipment manufacturing business located in Herning, Denmark. The Company's equipment is purchased by wood product manufacturers seeking to optimize their assembly processes and reduce overall production costs. Obel-P's product lines include mounting machinery designed to move wooden components along the assembly line as well as high frequency presses and generators used to combine individual components at the end of the production process.
About Lynx UK
Duke entered into a royalty agreement with Lynx UK, a wholly-owned subsidiary of Lynx Equity Limited, on 5 October 2017 to finance Lynx UK's acquisition strategy. The total financing commitment was £15.0 million, to be drawn in tranches, with proceeds being used to acquire target companies in Europe.
Lynx UK's European portfolio currently includes UK's Signalhome, Label Express and Day 2 Interiors, and Denmark's PartnerService, Sundby Trapper, Arkas, Yding Gruppen and Obel-P Automation.
With sales in excess of C$500 million, Lynx Equity Limited is a diversified private equity firm focused on acquiring small and medium-sized businesses from owners looking to retire or seeking strategic opportunities. Lynx targets acquisitions of companies with EBITDA between US$750,000 to US$3 million and utilises a buy and hold strategy.
***ENDS***
For further information, please visit www.dukeroyalty.com or contact:
Duke Royalty Limited | Neil Johnson / Charles Cannon Brookes / Hugo Evans
| +44 (0) 1481 730 613 |
Cenkos Securities plc (Nominated Adviser and Joint Broker) | Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson | +44 (0) 207 397 8900 |
Canaccord Genuity (Joint Broker) | Adam James / Georgina McCooke | +44 (0) 207 523 8000 |
SEC Newgate (PR) | Elisabeth Cowell/ Richard Bicknell/ Max Richardson | +44 (0) 20 3757 6880 dukeroyalty@secnewgate.co.uk |
About Duke Royalty
Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders. Duke Royalty is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.