29th Nov 2011 07:00
For immediate release on 29 November 2011 Candover Investments plc - Sale of Capital Safety Group Candover Investments plc ("Candover" or the "Company") announces that its
investment manager Arle Capital Partners Limited ("Arle") has agreed the sale of Capital Safety Group ("CSG"), a leading global manufacturer of fall
protection and height safety equipment, to KKR for an enterprise value of
US$1.1bn. The deal is expected to complete in early 2012, subject to mandatory regulatory approvals.
The sale will generate proceeds of US$45.1m (£29.2m) for Candover. This represents an uplift of £5.6 million (24%) on the valuation of CSG at 30 June 2011, after adjusting for the sale of a follow-on investment of £0.5 million inCSG under the terms of the strip disposal mechanism set out in the circular
sent to shareholders in December 2010. This represents an increase of 26p per share from the 30 June 2011 net asset value of 839p per share.
The Company, together with the Candover 2005 Fund which is now managed by Arle, first invested in CSG in June 2007. Since then, CSG has doubled revenues to
over US$350m. The sale represents a 2.7x return on the original investment made by the Company and the Candover 2005 Fund.
Malcolm Fallen, CEO of Candover, said:
"Our strategy to progressively return cash to our shareholders as realisations are achieved by our investment manager is on track. The proceeds from this salewill further reduce net debt moving us closer to the point where the Company isin a net cash position and can begin the process of returning cash to
shareholders." Ends
For further information, please contact:
Candover Investments plc Malcolm Fallen, CEO +44 207 489 9848 Helen Walsh, Communications +44 7747 868347
XLONRelated Shares:
CDI.L