CDN
02/10/2012 08:30
GENERAL
REL: 0830 HRS Caledonia Investments Plc
GENERAL: CDN: Portfolio acquisition
Caledonia Investments plc
CALEDONIA INVESTMENTS PLC ACQUIRES PORTFOLIO OF FIVE US INDUSTRIAL BUSINESSES
FROM LATSHAW ENTERPRISES, INC.
Caledonia Investments plc ("Caledonia"), an investment trust company listed
on the London Stock Exchange, and Nova Capital Management Ltd ("Nova"), the
specialist acquirer of corporate and private equity portfolios, are pleased
to announce that they have completed the acquisition of five industrial
businesses in the USA. The acquired businesses comprised all of the
operating subsidiaries of Latshaw Enterprises, Inc., a US based industrial
group.
Equity financing for the acquisition was provided by Caledonia and Nova.
Caledonia has invested USD42 million in cash at completion. GSO Capital
Partners (part of the Blackstone Group) and PNC Bank provided the debt
financing.
The five acquired businesses have aggregate sales of approximately USD90
million and employ more than 450 people in five operating facilities across
the USA.
The businesses acquired are:
o Wescon Products Company, an OEM manufacturer of mechanical controls, cable
assemblies and screw machined components primarily for the lawn & garden
sector, based in Wichita, Kansas;
o Wescon Plastics LLC, a manufacturer of custom plastic injection moulded
parts using highly-engineered resins primarily for the battery and heavy duty
truck industries, based in Wichita, Kansas;
o MC Electronics Inc, which specializes in the assembly of custom electronic
cables, harnesses, electro-mechanical assemblies and full system integration,
based in Hollister, California;
o Coast Wire & Plastic Tech Inc, a manufacturer of custom electronic wire and
cable products, for the medical, instrumentation and commercial electronic
industries, based in Carson, California; and,
o Anderson & Forrester Inc, a manufacturer of orifices, fittings and gauging
tools for the natural gas and propane industries, based in Wheat Ridge,
Colorado.
Duncan Johnson of Caledonia commented:
"The underlying businesses of Latshaw Enterprises are each established
manufacturing operations enjoying strong positions in attractive markets.
The businesses are cash generative and our investment has been structured so
as to provide a running yield from year one. Along with Nova and the Latshaw
team we have developed an investment strategy which will see capital value
being built and realised over the medium term.
This is the third portfolio acquisition that Caledonia has funded with Nova.
Following the success of the first two investments, we are delighted to be
working with the Nova team once again. "
Caledonia was advised by Macfarlanes LLP and Catalysis Advisory. Latshaw was
advised by Husch Blackwell LLP and William Blair & Company LLC.
01 October 2012
For further information contact:
Caledonia Investments plc
Will Wyatt,
Chief Executive
+44 20 7802 8080
[email protected]
Duncan Johnson,
Head of Unquoted Investments
+44 20 7802 8407
[email protected]
Media contact:
College Hill
Tony Friend
+44 20 7457 2020
[email protected]
Antonia Coad
+44 20 7457 2020
[email protected]
END
Notes for editors:
Caledonia Investments plc
Caledonia is a self-managed investment trust company listed on the London
Stock Exchange with net assets of approximately GBP1.1bn. The company
maintains a concentrated portfolio of international quoted, unquoted and fund
investments and has paid an increasing dividend for 45 years.
In the unquoted arena, Caledonia seeks to invest GBP20 to GBP50 million in
private companies either on a majority or minority basis in situations where
it believes there to be a good opportunity for building value over the longer
term.
For additional information on Caledonia, please visit www.caledonia.com.
Neither the contents of the company's website nor the contents of any website
accessible from hyperlinks on the company's website (or any other website) is
incorporated into, or forms part of, this announcement.
Nova Capital Management Ltd
Established in 2002, and with a 20 strong team, Nova has acquired or taken
over the management of portfolios representing a total transactional value of
over EUR1.0 billion. Nova currently manages investments in over 25
businesses primarily operating in Western Europe and North America, across a
broad range of sectors.
For additional information on Nova Capital Management please go to
www.nova-cap.com
Nova Capital Management Limited is regulated and authorised by the Financial
Services Authority.
End CA:00227996 For:CDN Type:GENERAL Time:2012-10-02 08:30:09
