Epiris is pleased to announce that, following regulatory approvals, its portfolio company, Allflex Corporation (“Allflex”), has completed the acquisition of SCR (Engineers) Ltd (“SCR”) in a transaction valued at c.US$250 million.
Electra Private Equity PLC (“Electra”) has made a further investment of US$18 million (£12 million) in Allflex to support the acquisition.
Allflex is the world’s leading manufacturer and distributor of visual, electronic and tissue sampling animal identification devices selling more than 200 million tags each year in over 60 countries worldwide. Allflex employs over 1,300 employees around the world.
SCR is the world’s largest manufacturer of electronic milk meters and smart tags for monitoring cow fertility and health. Its products support the operations of tens of thousands of dairy farmers worldwide having a substantive effect on the business success of dairy farms by providing smarter and more efficient tools for farm management.
SCR has been leading the development of dairy monitoring technologies for cows, sheep and goats for more than a decade. The company’s significant growth has historically been driven by the increasing need for productivity gains for dairy farms and growing concern over animal well-being. Its acquisition provides Allflex with an entry into a highly attractive adjacent sector and cements Allflex’s position as the worldwide leader in animal traceability and farm livestock management solutions. Further growth is anticipated as the group makes use of its combined distribution, technology and product development resources.
Having first invested in Allflex in 1998, Electra sold its stake in the company to funds advised by BC Partners in 2013 generating a 15x return on Electra’s original investment; an IRR of 28%. Electra subsequently reinvested in Allflex for a 15% minority stake alongside BC Partners. At 30 September 2014, the valuation of Electra’s investment in Allflex was £54 million.
This is the second investment Epiris has announced this financial year following the £100 million investment to acquire the UK franchise of restaurant chain TGI Fridays in December 2014. In the year to 30 September 2014, Epiris announced a record level of new investment investing £410 million on behalf of its major client Electra Private Equity PLC.
Epiris refers to Epiris LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
Andrew Honnor 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 in the mid-market. During the last 25 years it has invested in excess of £4.4 billion in more than 200 deals. As at 30 September 2014, the firm had funds under management of over £1.6 billion including capital available for investment of circa £300 million.
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. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.
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 30 September 2014, Electra has seen diluted NAV per share growth of 262% (equivalent to a ten-year annualised return on equity of 14%) compared to a 120% increase in the FTSE All-Share.
For further information please visit www.electrapartners.com.
Epiris LLP is authorised and regulated by the Financial Conduct Authority.