HgCapital Trust plc Regulatory News (HGT)

21 Aug 2007 08:31

HG Capital Trust PLC21 August 2007 The following is the text of a press release issued by HgCapital, which managesthe investment portfolio of HgCapital Trust plc alongside those of otherinstitutional clients. On completion of the sale of Schenk Process, HgCapitalTrust plc, a listed investment trust giving investors the opportunity toparticipate in all of HgCapital's investments, will realise a total of £33million. The impact of the realisation on the net asset value of HgCapital Trustplc would be an increase of approximately 80p per share over the published 31stMay 2007 net asset value. The deal is subject to cartel clearance with fundsflow expected in October-November 2007. HgCapital sells Schenck Process to Industri Kapital Schenck Process is to embark on further expansion with the support of IndustriKapital following two years of successful growth under the stewardship ofHgCapital. Industri Kapital has signed an agreement to acquire a majority stakein the company with HgCapital. Since Schenck Process was acquired by HgCapital from Durr AG in 2005, it hasbuilt an even stronger and strategically well-positioned business, growing theworkforce to around 1,800 employees; increasing revenue to €350 million perannum; and expanding its international footprint organically and by acquisition.It was during HgCapital's tenure that Schenck Process acquired Stock Equipment,a strategically important move into the coal power equipment sector thatresulted in a further diversification of the group. Today Schenck Process is one of the global market-leading providers ofindustrial weighing, feeding, screening and automation equipment and solutions.It benefits from a multitude of growth opportunities and a very robust andbalanced business model. It has significant operations in Europe, North andSouth America, China and Australia and serves a diversified customer base acrossa wide range of industries, including Heavy, Light, Mining, Power and TransportAutomation. As the only truly global company in the market coupled with aleading aftermarket service platform, Schenck Process is in a unique position tosupply its broad blue chip customer base. Detlef Dinsel, Partner Industri Kapital commented: "Schenck Process is thewell-established, clear global market leader in the industrial processengineering solutions sector and enjoys a strong financial track record.Together with the management team, our intention is to continue to build on thecompany's strong market position. We intend to continue its acquisition strategyas well as growing market share and expanding into new markets." Dr Jochen Weyrauch, President & CEO Schenck Process commented: "We welcome theinvestment by Industri Kapital with whom we share similar visions and businessphilosophies. We would like to thank HgCapital for a fruitful and constructivepartnership over the past two years; it has provided valuable support during acrucial phase in the development of the company. Schenck Process has grownstrongly through its ability to serve customers better than its competitors andthe management team and employees can be justifiably proud of this success". Martin Block, Head of HgCapital Germany, said: "We have been delighted with ourinvestment in Schenck Process. It has been a pleasure to work alongside andsupport such a dynamic management team and this shows what can be achieved by apartnership approach. We are proud to have supported the company as it has grownand developed over the past two years and I have every confidence that it willcontinue in a similar manner. We wish Industri Kapital and the management teamevery success for the future." HgCapital was advised by Greenhill and Clifford Chance. Industri Kapital wasadvised by Sal. Oppenheim, Lazard and Freshfields. The transaction is subject to customary merger control approvals. Contacts: Industri Kapital:Detlef Dinsel, PartnerTel: +49 40 369 8850 Charlotte Laveson, Communication ManagerTel: + 46 8 678 95 51 Schenck Process:Stewart D. Murdoch, Director Business Development and MarketingTel: +49 61 51 32 2814 HgCapital:Dr Karsten Hartmann, Partner, HgCapital MunichTel: +49 89 25 54 95 517 Joachim Drees, Director, HgCapital LondonTel: +44 20 70 89 79 40 About the companies: Industri Kapital Industri Kapital is a European private equity firm with Nordic roots, managingclose to4 billion euros in fund commitments. Since 1989, Industri Kapital has acquired64 European companies. The current portfolio encompasses 20 companies with atotal turnover close to 8.6 billion euros. Industri Kapital invests mainly inmid-sized companies with strong cash flow and profit improvement potential,operating in mature industries with fundamental underlying growth. Currentinvestments in Germany include Sport Group, Minimax and DYWIDAG-SystemsInternational (DSI). Past investments include and GARDENA. For furtherinformation: www.industrikapital.com Schenck Process Schenck Process, headquartered in Darmstadt, Germany, is a global market leaderof solutions in measuring and process technologies in industrial weighing,feeding, screening and automation. Schenck Process develops, manufactures andmarkets a full range of solutions, products and turnkey systems on the basis ofcombining process engineering expertise, reliable components and field-proventechnology. Schenck Process is organised along International Business Segments, namely: Heavy: Cement, Gypsum, Sand & Gravel, Steel and NF Metals industriesLight: Chemicals, Food, Pharmaceuticals and Plastics industriesMining: Mining industriesPower: Coal-Fired Power Plants and associated industriesTransport Automation: Logistical processes - road and rail Employing over 1,800 staff, Schenck Process has activities in more than 40countries and operates 14 state-of-the art assembly facilities globally. Forfurther information: www.schenckprocess.com HgCapital: HgCapital is a private-equity investor in the European mid-market. We focus oninvestments with an enterprise value in the range of €50-500 million. Ourbusiness model combines sector specialisation with dedicated, pro-active supportto our portfolio companies as well as the corresponding management expertiseacross all phases of the investment process.HgCapital manages more than €2.7billion for some of the world's most respected institutional and privateinvestors. Our goal is to achieve outstanding results for our investors,management team and intermediaries. Further information on HgCapital can be found at www.hgcapital.com. This information is provided by RNS The company news service from the London Stock Exchange