HgCapital Trust plc Regulatory News (HGT)

13 Jun 2008 14:07



The following is the text of a press release issued by HgCapital, which manages the investment portfolio of HgCapital Trust plc alongside those of other institutional clients. The Trust, which is a listed investment trust giving investors the opportunity to participate in all of HgCapital's investments, will invest approximately £5.3 million in Achilles.

HgCapital invests in Achilles

London, 13 June 2008: HgCapital, the European sector-focused private equity investor, today announced that it is investing in Achilles Group Ltd ("Achilles"), a global leader in buyer-sponsored supplier data management and validation services. HgCapital's equity commitment is £42 million. The total deal value is undisclosed. 

Achilles was founded in 1990 in Norway and is now headquartered in Abingdon, UK. The company works to identify, assess, and monitor suppliers on behalf of major organisations worldwide. Achilles builds and supports buyer-supplier communities in many industry sectors ("schemes"), creating unique and powerful global networks. These sustainable procurement services help reduce risk in the supply chain. Achilles now has 30 supplier schemes serving c.550 of the world's largest companies (including Shell, Statoil Hydro, National Grid, Edf, Eli Lilly, Codelco) and c.32,000 registered suppliers.

Buyers use the schemes as a means of ensuring access to up-to-date financial, environmental, health-and-safety, corporate social responsibility (CSR) and other data about their key suppliers. This makes the procurement process more cost and time effective as well as ensuring that all suppliers meet the required regulatory framework and appropriate industry standards. As global procurement becomes increasingly complex, Achilles is well positioned to take advantage of beneficial market conditions. 

Kai Romberg of HgCapital, leading the transaction, commented:

"The transaction is fully in line with the HgCapital TMT's team acquisition criteria: it is a market leader in a fast growing industry, with significant recurring revenue streams and high barriers to entry. HgCapital will support current management's growth plans to expand further into new markets through geographical, product and industry sector development."

Colin Maund, CEO of Achilles, said. 

"We are delighted to be joining forces with HgCapital who are a respected partner with a fantastic record in growing and developing subscription-based businesses. This represents a major step forward for Achilles and will allow the business to continue to expand whilst retaining its unique culture and neutrality."

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About HgCapital

HgCapital is a sector focused private equity investor in the European mid-market. We focus on investments with an enterprise value in the range of £50-£500 million. Our business model combines sector specialisation with dedicated, pro-active support to our portfolio companies as well as the corresponding management expertise across all phases of the investment process. HgCapital manages more than €2 billion for some of the world's leading institutional and private investors. Our goal is to achieve outstanding results for our investors, management team and intermediaries.

For further details, see www.hgcapital.com

About Achilles

Achilles works to identify, qualify, evaluate, and monitor suppliers on behalf of major organisations worldwide. We build and support buyer-supplier communities in many industry sectors, creating unique and powerful global networks. Our services for sustainable procurement help create opportunities for business and reduce risk throughout the supply chain. 

For further details, see www.achilles.com