Electra Partners today announces it has received a binding offer for Allflex Holdings (“Allflex”), the world’s leading manufacturer and distributor of plastic and electronic animal identification tags, from funds advised by BC Partners.
The offer is subject to consultation with the relevant works council in France and certain regulatory approvals. If the offer is accepted, and reflecting current exchange rates, acceptance of the offer will generate gross proceeds of US$630.5 million to clients of Electra Partners. This includes Electra Private Equity PLC who will receive US$398 million (£256.7 million) on closing, representing a gross return of 15x original cost (including income) over the 14 years of investment; an IRR of 28%.
Electra Partners and Allflex were advised by Rothschild.
Electra Partners first invested in Allflex in 1998 investing US$46 million in the US$160 million buyout of the company. The business has since been refinanced a number of times such that total cumulative proceeds receivable by Electra Partners’ clients after completion of this transaction will amount to US$835 million.
Over the 14 years of Electra Partners’ ownership, Allflex has seen strong organic and acquisitive growth driven by increased focus on food chain traceability and mandatory regulations controlling the spread of animal diseases. To capitalise on increasing demand, Allflex introduced new products, extended tagging to more species, and expanded into new geographical markets such as China and Africa.
David Symondson, Deputy Managing Partner at Electra Partners, said:
“Allflex is an excellent business which has proved to be a first-class investment for Electra Partners delivering strong returns at each of the refinancings over the years and now at the sale. Over this time, the company has become the leading global provider of animal identification tags with an expanded product range which includes RFID and tissue sampling tags.
“As with the sale of Capital Safety Group, which we sold last year for a 6.5x multiple, Allflex is another proven example of Electra Partners creating substantial value for clients by transforming international businesses into truly global leaders in their fields.”
David Symondson and Rhian Davies were responsible for the investment in Allflex.
Electra Private Equity PLC has already issued a statement in relation to the impact of the sale of its interest in Allflex.
The sale follows a busy start to 2013 for Electra Partners in which it has announced the realisation of its investment in esure, which generated a 3x return, and three new investments: UBM Data Services (now called AXIO Data Group), a portfolio of secondary private equity funds, and CALA group.
Electra Partners refers to Electra Partners LLP acting on behalf of Electra Private Equity PLC and other clients.
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For further information please contact:
For David Symondson:
Charlotte McMullen, M:Communications +44 (0)20 7920 2349
Andrew Kenny or Nicholas Board, Electra Partners +44 (0)20 7306 3932
Laurent Haziza, Rothschild +44 (0)20 7280 5230
Note to Editors:
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 30 years’ experience in the mid-market buyout sector. As at 30 September 2012, the firm had funds under management of over £1.3 billion. The firm's flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners typically seeks to invest in the region of £40 to £120 million of equity, in deals of up to £300 million enterprise value.
The firm's major client is Electra Private Equity PLC, a private equity investment trust which has been listed on the London Stock Exchange since 1976.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.