Electra Private Equity Plc (‘Electra’) is pleased to announce the refinancing of Allflex Holdings II, Inc (‘Allflex’) in a transaction led by Royal Bank of Scotland plc.
As a consequence of the refinancing and related transactions, Electra will receive cash proceeds of $78.3m together with interests in the new company valued at $114.0m. At current exchange rates, the transaction will give rise to an increase in Electra’s net asset value since
31 March 2007 of £42m representing an uplift in net asset value per share of 112.5p.
In 1998, Electra led the $160m buyout of Allflex. Allflex is the world’s leading manufacturer and distributor of visual and electronic animal identification tags with factories in several countries, including France, USA, Canada, Australia, New Zealand, Brazil and China. Its major markets encompass Europe, North America, South America and Australasia. Its principal products are sold into the cattle and sheep sector, and play an important role in the recording of livestock movements.
Allflex has been refinanced on two previous occasions, most recently in 2005. Based on the aggregate proceeds and retained investment arising from this latest refinancing, Electra will achieve a multiple of over 5 times its original investment with an IRR over 9 years of 25%.
David Symondson at Electra Partners commented, “this investment, in common with the sale of Capital Safety Group in May of this year, bears testament to Electra’s policy of holding successful investments for the longer term with above average returns being achieved. Furthermore, Allflex has been successfully refinanced, despite difficult conditions in the debt markets. This reflects the strength of Allflex’s business. Allflex’s markets continue to expand as food health and safety becomes an increasingly important topic for governments. We look forward to a continued period of sustainable growth from our investment in Allflex”.