Epiris is pleased to announce that, on behalf of Electra Private Equity PLC (“Electra”), it has partially realised Electra’s investment in Allflex Corporation (“Allflex”) in a series of transactions between Allflex, its shareholders and Public Sector Pension Investment Board (“PSP Investments”).
Electra has received total proceeds of €72 million (£57 million) from the redemption of preferred equity and from the sale of c.28% of its 15% equity interest. This is equivalent to the return of 0.8x cost. In addition, Electra retains an interest in Allflex with a value, using the valuation implied by this transaction, of €78 million (£65 million). Together, this represents an uplift of 48% on the valuation of the investment at 31 March 2016, equivalent to an increase in NAV of 81 pence per share. The return on the 2013 investment is currently 1.8x original cost and an IRR of 24%, at the valuation implied by this transaction.
Allflex is the global leader in animal intelligence and monitoring technologies for livestock, pets, fish and other species. It designs, produces and distributes a variety of products such as radio-frequency identification (RFID) and visual ear tags, tissue sampling devices, RFID implants, monitoring devices, milk meters, and other farm management equipment. Allflex operates in over 60 countries and employs over 1,700 people worldwide.
Electra originally invested in Allflex in 1998. In 2013 Electra sold its investment in Allflex, generating a return of 15x original cost and an IRR of 28%. Electra made a new equity investment of £57 million for a minority stake in Allflex alongside BC Partners. In 2015 Electra made a further investment of £11 million to support Allflex’s $250 million acquisition of SCR (Engineers) Ltd.
David Symondson, Chris Hanna and Nicola Gray are responsible for the investment in Allflex.
Epiris refers to Epiris LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
Andrew Honnor, Matthew Goodman and Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Andrew Kenny and Nicholas Board, Epiris +44 (0)20 7306 3932
Note to Editors:
About Epiris LLP
Epiris is an independent private equity fund manager with over 25 years' experience. During this time it has invested in excess of £4.7 billion in over 200 deals. As at 31 March 2016, the firm had funds under management of £2 billion.
Epiris’ flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt.
The firm's major client is Electra Private Equity PLC (“Electra”), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra’s long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 31 March 2016, Electra has seen diluted NAV per share growth of 228%. This is more than seven times the NAV per share return of the Morningstar Private Equity Index (ex. Electra). It is also equivalent to a ten-year annualised return of 13%, in the upper part of Electra’s target range of 10-15% over the long-term.
For further information please visit www.electrapartners.com
Epiris LLP is authorised and regulated by the Financial Conduct Authority.