15th Oct 2018 08:52
LONDON (Alliance News) - Caledonia Investments PLC on Monday said it has acquired a majority equity stake in, and provided a bridging loan to, Deep Sea Electronics Ltd.
Caledonia Investments subscribed for GBP117.2 million for a 98.9% equity stake in the battery charger and diesel-powered generator manufacturer. Deep Sea's pretax profit in the year to May 31 was GBP12.8 million on revenue of GBP37.8 million.
The investment trust has also supplied an additional GBP50.0million short-term bridging loan to Deep Sea. This is to be replaced by external bank debt "in due course".
The Caledonia Investments management team has invested a further GBP1.7 million for the remaining Deep Sea equity.
"Deep Sea's consistently strong profitability, high cash generation and leading market position ideally fit our unquoted pool's investment criteria. We believe there are exciting opportunities to build further on Deep Sea's excellent record and to expand its global presence," said Duncan Johnson, head of unquoted investments.
Shares in Caledonia Investments were down 0.4% at 2,745.00 pence.
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