19th Jun 2009 07:15
Candover sells Wood Mackenzie
Candover Investments plc ("Candover") announces that its wholly owned subsidiary, Candover Partners Limited, has today agreed the sale of Wood Mackenzie, to Charterhouse Capital Partners for an enterprise value of £553 million.
The sale will generate proceeds of £36.2 million in total for Candover. This comprises cash proceeds now of £19.6 million, with the potential for further proceeds of £1.9 million under a deferred consideration scheme; and an additional cash payment of £16.7 million as a result of the crystallisation of carried interest payments from the Candover 2001 Fund. As a consequence, Candover Investments will revalue its carried interest entitlements. An update on the impact of this on net asset value will be given with the 2009 half year results, due to be announced on Friday August 21st. Candover's 2008 year-end valuation of Wood Mackenzie was £20.5 million (9.2% of net asset value).
The Candover 2001 Fund, managed by Candover Partners, first invested in Wood Mackenzie in 2005 in order to facilitate its growth plans and became the majority shareholder in 2007 in a follow-on transaction. Including proceeds from earlier refinancings, Wood Mackenzie has generated an IRR of 56%, prior to any further proceeds. The 2001 Fund has now fully realised eight out of its 16 investments, resulting in a realised multiple of 3.0 times and an IRR of 47% to date.
Gerry Grimstone, Chairman of Candover said:
"Candover's stabilisation programme continues to make progress. The proceeds from this sale bolster our cash reserves and the crystallisation of the carried interest bodes well for incremental cash flow as and when the 2001 Fund achieves more realisations."
Ends.
For further information, please contact: Candover +44 20 7489 9848 Ian Gray Brian Mercer Tulchan +44 20 7353 4200 Susanna Voyle Peter Hewer Note to editors:
Wood Mackenzie is a leading provider of research and consulting services to the global energy industry covering the upstream oil and gas, oil refining and downstream, gas and power generation and coal sectors in 93 countries. Its clients include virtually every major company in the global energy industry, as well as governments and government agencies across the globe. In 2008, Wood Mackenzie extended its consulting and research activities into mining and metals via the acquisition of Brook Hunt. Wood Mackenzie currently employs around 600 staff, making it one of the largest energy research and consulting companies in the world. Wood Mackenzie achieved sales of £97 million and profits of £38 million in 2008, compared to prior year figures of £78 million and £29 million.
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