HgCapital Trust plc Regulatory News (HGT)

14 Jun 2005 10:29

HG Capital Trust PLC14 June 2005 The following is the text from a press release issued by HgCapital, whichmanages the investment portfolio of HgCapital Trust plc alongside those of otherclients. HgCapital Trust plc, a quoted investment trust that participates in allHgCapital's investments, will realise a total of £16 million from its investmentin Tunstall, an uplift of £4.4 million against the latest published net assetvalue at 31st May 2005. The estimated impact of the realisation on the net assetvalue of HgCapital Trust plc would be 17p per share. HgCapital sells Tunstall for £225 million £136 million returned to clients over five years London, 14 June 2005. HgCapital, a sector-focused European private equityinvestor, has sold Tunstall Holdings Limited, Europe's leading manufacturer andprovider of personal and home reassurance telecare products, to Bridgepoint for£225 million. HgCapital completed the £102 million management buy-out of Tunstall in 1999.Under HgCapital's ownership, Tunstall has expanded its activities in every majorEuropean market as well as North America and Australasia. This focus on newmarkets together with improved manufacturing processes and quality has resultedin a doubling of profits since acquisition, from £9 million to £18 million,representing an annual year-on-year growth of 15%. Turnover has increased 56%to £78 million. In 2004 the company was recapitalised, allowing £26 million to be returned toclients. Following the sale, HgCapital's £51 million investment will have returned atotal of £136 million, representing 2.8 times original cost and an IRR of 22%.A further £3.3 million is dependent on current year performance. Lindsay Dibden, Head of HgCapital's healthcare team, commented: "Tunstall is nowan exceptional business, poised to benefit further from the clear recognitionthat telecare is the most cost-effective solution to the reassurance needs ofthe elderly. The business has developed new products, expanded internationallyand improved operations, and is now the leading European player in the sector.After five years working alongside Tunstall's management, we are delighted to beable to sell such a strong business." James Buckley, Managing Director of Tunstall, commented: "Tunstall has benefitedconsiderably from the investment of HgCapital. Their hands-on approach combinedwith their deep understanding of the sector, has contributed to the strongglobal growth of the business. We look forward to working alongside our newinvestors equally successfully." - ends - For further information contact: HgCapital Lindsay Dibden +44 (0)20 7089 7980 lindsay.dibden@hgcapital.net Maitland Neil Bennett +44 (0)20 7379 5151 nbennett@maitland.co.ukPeter Ogden pogden@maitland.co.uk This information is provided by RNS The company news service from the London Stock Exchange