Nova Capital Management Limited (“Nova”), the specialist acquirer of corporate and private equity portfolios, has announced the sale of Wax Digital (“Wax”) to August Equity LLP for an undisclosed sum. The gross equity return to Nova’s investors will be around 3.2x their original equity investment.
Wax was formed in 2000 and is now the UK’s leading eProcurement solution provider Later Nova became the single largest shareholder as a result of its acquisition of Springboard plc, a Public to Private transaction of 12 UK businesses completed in May 2006.
Wax is an independent Software-as-a-Service (SaaS) business which delivers Source-to-Pay solutions to mid and large-sized organisations around the world. The company provides 245,000 users in 102 countries with a horizontal solution which serves enterprise customers in e-procurement, usually helping customers to maximise savings in indirect spend, and is the only UK vendor to feature in Gartner reports for eSourcing and Purchase-to-Pay (P2P). Wax Digital’s accessible software solutions are deployed via the cloud and managing tens of millions of transactions annually. Headquartered in Cheshire in the UK, the company works with clients including Universal, Nissan, Virgin Active, BAE Systems and the NHS.
Tom Leader commented, the exit from Wax generated a very healthy multiple and IRR for our investors and will allow us to focus on creating value from Directorbank Group Limited, the last remaining Springboard asset.
Nova Capital Portfolio company National Concrete Accessories (“NCA”) has announced the acquisition of its Western Canadian Rival Northland Construction Supplies.
NCA is Canada’s leading manufacturer and distributor of concrete accessories with 14 branches stretching from Quebec to British Columbia. Northland is a similar distribution business with 5 branches in Alberta. This is the second acquisition made by NCA under Nova’s ownership following the earlier purchase of Ottawa based Bray. The acquisition was funded through new debt facilities for NCA provided by HSBC Calgary who have been lenders to the Group since Nova’s acquisition.
Nova acquired NCA as part of a portfolio buy-out in late 2011 of a number of Canadian industrial businesses including Wilkinson Steel and Metals (subsequently sold to Samuel Group) and Calgary based Exchanger Industries.
NCA and Nova were advised on the Northland acquisition by Stikeman Elliott and KPMG.
Kath Jones, Nova’s Toronto based Investment Partner said “We are delighted to add Northland to our NCA operations. The acquisition strengthens our position in Western Canada and is fully in line with our strategy to drive both organic and acquisitive growth for this investment”.
CHICAGO (Dec. 3, 2014) Nova Capital Management Ltd (“Nova”) announced today that it has completed the sale of its portfolio company Coast Wire & Plastic Tech., LLC (“Coast Wire”) to Alpha Wire (“Alpha”), an American manufacturer of wire and cable products. Nova acquired Coast Wire in 2012 as part of a portfolio of five industrial businesses previously owned by Latshaw Enterprises (“Latshaw”), a US based industrial holding company.
Coast Wire is a world-class designer and manufacturer of technologically advanced electronic wire and cable products for a variety of industries, and has been in business for over 50 years.
Headquartered in Carson, California, Coast Wire works directly with leading OEMs and subcontractors to support mission-critical cable designs in the some of the most advanced systems and harsh environments.
“This exit comes ahead of schedule and has met expectations for all parties involved,” said Jan Kreminski, Nova’s Chicago-based Operating Partner. “It is in line with the portfolio strategy we envisaged at the time of the acquisition from Latshaw. We continue to concentrate our resources on the remaining three companies in this portfolio, furthering their development and growth. We believe that Alpha will be an excellent owner of the business.”
According to Kreminski, the exit for Coast Wire again demonstrates Nova’s specialized capabilities in maximizing investor returns through building and strengthening values of its acquired portfolio companies by focusing on building strong management teams, implementing effective growth strategies, and augmenting core competencies. The result of this approach ultimately attracts a high level of strategic interest in Nova’s portfolio companies. A subsequent strategic owner, like Alpha, will further accelerate growth and development of the portfolio company.
Mark Vanderwoude, President & CEO of Coast Wire, said, “Nova has been an excellent partner over the last three years and has invested substantially in our people, our infrastructure and our technology. We have an outstanding employee team with many decades of experience between them and we look forward to integrating our business into the Alpha platform and supporting our customers for many years to come. Being part of Alpha Wire creates new opportunities and broadens our global customer base. We share Alpha’s commitment to provide products of the highest quality to meet the most demanding application needs of our customers.”
Mike Dugar, President of Alpha Wire, said, “We are pleased to add Coast to the Alpha family. With the addition of Coast’s expertise in custom cable design and manufacturing, we offer a superior array of cabling solutions for our targeted markets, including medical device manufacturers and industrial machine builders.”
Nova Capital Management Ltd (‘Nova Capital’), the portfolio buy-out specialists is pleased to announce the appointment of Tom Leader to the newly created role of Chief Investment Officer.
Tom has been an Investment Partner of Nova Capital since he joined the firm in 2005, having previously had extensive private equity experience at Morgan Grenfell Private Equity and Baring Private Equity Partners.
Since joining Nova Capital, as well as his direct involvement in several of Nova Capital’s new investments, Tom has played a key role in developing the firm’s investment processes and strategies. In his new role Tom will be responsible for the portfolio management and investment performance of the firm’s existing investments and for overseeing and maintaining quality control on all new investments
David Williamson, Nova Capital’s Managing Partner, said
“I am delighted that Tom is taking on this role. He has already played a huge part in helping us refine our investment strategy and improve our investment and portfolio management processes and procedures over the last 8 years. This appointment will mean he can give greater focus to that role going forward as we seek continuously to achieve the highest standards in terms of the professionalism and rigour we bring to new and existing investments, both in Europe and North America”.
Nova Capital Management Ltd (“Nova”) announces it has completed the sale of its portfolio company Anderson & Forrester LLC (“A&F”) to M & N Acquisitions Co., LLC (“M&N”) a Wichita, Kansas based Company headed by Michele Nordahl. Nova acquired A&F in 2012 as part of a portfolio of five industrial businesses previously owned by Latshaw Enterprises, a US based industrial holding company.
A&F is a leader in supplying the gas industry with quality fittings, gauging drills, broaches, reamers and specialty tools since 1928.
Headquartered in Denver, Colorado, A&F has a national presence serving the US, Mexico and Canada with its products.
Jan Kreminski, Nova’s Chicago-based Operating Partner said: “This exit is in line with the portfolio strategy we envisaged at the time of the acquisition from Latshaw and will enable us to concentrate our resources on the remaining 4 companies in this portfolio over the coming years. We believe that Michele will be an excellent owner of the business.”
Michele Nordahl, Managing Partner of M&N said: “I am very excited about this opportunity with Anderson & Forrester and moving the company forward. We have an outstanding employee team with well over 100 years of experience between them and I look forward to working with the A&F team, our suppliers and customers for many years to come.”
Nova Capital Management Ltd. (“Nova”) announces it has completed the sale of its portfolio company Debro to 4I Capital Inc., a Toronto-based private investment company headed by Brian Imrie. Nova acquired Debro in 2011 as part of a portfolio of five industrial businesses previously owned by Amalgamated Metal Corporation Plc (“AMC”), a UK based investment group.
Debro is a national distributor of specialty chemicals providing Canadian manufacturers with chemical raw material and supply chain solutions. Debro operates through four business units: Fine Chemicals, Process Chemicals, Food Ingredients and Industrial Specialties to serve a diverse base of customers.
Headquartered in Brampton, Ontario, Debro has a national presence with offices in Dorval, Quebec and Richmond, B.C. supported by a network of five, third-party warehouses.
Bill Heise, President of Debro stated that “this is a great outcome for the entire Debro team. We look forward to working with Brian Imrie in the coming years to capitalize on the many opportunities we see for profitable growth.”
Kath Jones, Nova’s Toronto-based Investment Partner said “this exit is in line with the portfolio strategy we envisaged at the time of the acquisition from AMC and will enable us to concentrate our resources on the remaining 2 companies in this portfolio over the coming years. We believe that Brian will be an excellent owner of the business.”
Brian Imrie, Debro’s new Chairman said “I am pleased to return Debro to Canadian ownership. Debro is one of the leading, independent chemical distributors in Canada. We have an outstanding employee team lead by Bill Heise. We represent many of the best chemical companies in the world and serve a diverse and growing customer base across Canada. I look forward to working with the Debro team, our suppliers and customers and to celebrating Debro’s centennial in 2020 and for many years beyond.”
CHICAGO and LONDON – September 11, 2013 – Nova Capital (“Nova”), the specialist acquirer of corporate and private equity portfolios, today announced the closing of the transaction to acquire a portfolio of businesses within Newell Rubbermaid’s Hardware group in North America for USD $214 million.
The acquisition was announced August 9th and includes five home improvement and hardware brands: Amerock, Ashland, Bulldog, Drapery Hardware and Shur-Line. The acquisition was funded through a newly established fund with equity provided by its limited partners, including Nova and secondary funds managed by HarbourVest Partners LLC and Landmark Partners.
“Nova is committed to targeted investment in these businesses to drive future growth. Our proven track record of combining operational and financial expertise is well established and has consistently added value to acquired businesses,” said David Jacobs, Nova Investment Partner. “This collection of strong brands and long standing channel partnerships is well positioned to capitalize on the up-turns in the U.S. housing, home improvement and consumer markets.”
Nick Morrisroe, formerly of Newell Rubbermaid, will continue to serve in his role of Vice President and General Manager for the combined Hardware businesses. David Jacobs and Richard Lobo have joined the boards of the businesses as Nova’s Investment Partners, while Ronald Foy of Nova has joined as an Operating Partner.
Nova announced the addition of a North American headquarters earlier this year, and has recently added key leadership and staff to its team here to support the company’s accelerating business growth in North America. In September 2012, Nova completed the acquisition of five industrial businesses in the U.S. including all of the operating subsidiaries of Latshaw Enterprises, Inc. in a single transaction. In August 2011, Nova completed the acquisition of five industrial businesses in Canada.
Nova Capital Management, the specialist acquirer of corporate and private equity portfolios, is pleased to announce the appointment of Ronald Foy as Operating Partner. This follows the recent announcement of Nova’s proposed acquisition of five home improvement and hardware brands from Newell Rubbermaid in North America.
Ron will be joining the growing team of operating and investment professionals based out of Nova’s office in Chicago, which opened its doors at the beginning of the year. Ron was previously President and CEO at Truth Hardware when it was owned by UK listed group Melrose Plc., and altogether he has over 30 years experience in the building products industry with groups such as Masco and Black & Decker.
David Jacobs, Nova’s Investment Partner commented: “We believe that Ron’s experience will be of huge benefit in supporting the management teams of Amerock, Ashland, Bulldog, Drapery Hardware and Shur-Line in the growth of those businesses. His wealth of knowledge in the industry has been gained over a long and successful career and we believe it to be important that the newly acquired companies feel comfort that they will have an experienced operating executive joining their Boards.”
David Williamson, Nova’s Managing Partner commented: “We are delighted that Ron is joining our fast-growing team in North America. His appointment fits perfectly with Nova’s philosophy of employing highly experienced Operating Partners within its core team to work alongside our Investment Partners in the portfolios we acquire”.
Ron Foy added: “I’m very pleased and excited to join the Nova team and to quickly engage in this dynamic opportunity. I have known and respected the heritage brands involved in our acquisition for many years and believe the combination of their product quality, channel positioning, and strong core leadership will quickly benefit from the unique Nova operating approach and track record. We are looking forward to cementing long standing relationships while concurrently bringing innovation and growth to all aspects of the enterprise”.
CHICAGO and LONDON – August 9, 2013 – Nova Capital (“Nova”), the specialist acquirer of corporate and private equity portfolios, has entered into a definitive agreement to acquire a portfolio of businesses within Newell Rubbermaid’s Hardware group in the U.S. for USD $214 million. The acquisition includes five home improvement and hardware brands: Amerock, Ashland, Bulldog, Drapery Hardware and Shur-Line.
“We are thrilled to be acquiring this collection of strong brands, which are well-positioned to grow their respective share and performance based on a history of superior product quality, service and innovation, in combination with long term partnerships in retail, OEM and two-step distribution channels. In addition to their strong foundational attributes, these businesses should also benefit from the up-turns in the U.S. housing, home improvement and consumer markets. Our priority is to accelerate the current plans in place to optimize these businesses for future growth through stewardship and appropriate investment,” said David Jacobs, Nova Investment Partner. “The acquisition is another example of Nova’s unique approach to delivering corporations and private sellers a solution for the sale of multiple non-core assets in a single transaction.”
“When we announced our intention to sell the businesses, our goal was to find a strategic acquirer that is committed to investing in our brands and growing the businesses, creating opportunities to expand distribution, manufacturing and sourcing. We believe we have found in Nova a partner with the right depth of operational and financial expertise to help continue building our brands,” said Nick Morrisroe, Vice President and General Manager, Hardware for Newell Rubbermaid.
Morrisroe will continue to serve in his role of Vice President and General Manager for the combined businesses. David Jacobs will join the boards of the businesses as Nova’s Investment Partner. The transaction is expected to close within the third calendar quarter, subject to customary conditions.
Nova announced the addition of a North American headquarters earlier this year, and has recently added key leadership and staff to its North American team to support the company’s accelerating business growth in North America. In September 2012, Nova completed the acquisition of five industrial businesses in the U.S. – all of the operating subsidiaries of Latshaw Enterprises, Inc. – in a single transaction. In August 2011, Nova completed the acquisition of five industrial businesses in Canada.
Nova Capital Management Ltd (”Nova”) announces it has agreed to the sale of the assets of its portfolio company Wilkinson to Samuel, Son & Co., Limited. The transaction is expected to close later this month following regulatory approval. Nova acquired Wilkinson in 2011 as part of a portfolio of five industrial businesses previously owned by Amalgamated Metal Corporation Plc.
Wilkinson is a steel and metal service centre business that is aligned to the natural resource based economies of the three Western Canadian provinces, dealing directly with the forestry, mining, and shipbuilding industries in British Columbia, oil, gas, and mining in Alberta, and agriculture, mining, and oil & gas in Saskatchewan. Wilkinson offers a full range of products, processing services and delivery capabilities to companies directly engaged in the natural resource industries.
Samuel is the 5th largest processor and distributor of carbon steel, stainless steel, and aluminium in North America and has over 100 strategically located steel service centres and manufacturing facilities. Samuel and Wilkinson maintain complimentary product lines with minimal customer and product overlap which management believes will provide a well suited long term strategic home for Wilkinson after many years of ownership by financial investors.
Bill Hughes, President of Wilkinson stated that “the acquisition by Samuel provides an excellent strategic and geographic fit that will best serve the interests of Wilkinson’s existing customers, suppliers and employees, generating new opportunities and profitable growth.”
Kath Jones, Nova’s Toronto based Investment Partner said “we have always felt that Wilkinson would benefit from being part of a larger steel services group and believe that Samuel will be an excellent owner of the business. The exit is in line with the portfolio strategy we envisaged at the time of the acquisition from AMC and will enable us to concentrate our resources of the other 3 companies in this portfolio over the coming years.”
Nova Capital Management Ltd (“Nova”), the specialist acquirer of corporate and private equity portfolios has announced the promotion of Jonathan Seal to Investment Partner. This follows Nova’s announcement of the opening of its Chicago office and reflects the continuing development of its
Jonathan joined Nova in January 2012 and has been significantly involved in the management of the Parseq portfolio, following the successful Public to Private acquisition of Parseq Plc in late 2011. Jonathan has also taken on responsibility for coordinating the firm’s new business activities in
David Williamson, Managing Partner, Nova said:
“We are pleased to announce this well deserved promotion. Jonathan has become a key member of the firm in the short time he has been with us. His combination of investment, transactional and entrepreneurial experience fits very well within Nova’s highly operational private equity model.”
Nova Capital Management Ltd (“Nova”), the specialist acquirer of corporate and private equity portfolios, announced today that it has opened its North American headquarters in Chicago. Nova has also hired seasoned investment banking professional David A. Jacobs to support the company’s accelerating business growth in North America as an Investment Partner. Experts in closing complex multi-jurisdictional transactions with the goal of re-energising businesses, Nova is bullish on the market in North America.
“We are continuing to see increased opportunities for purchasing a diverse mix of business assets from corporate and private sellers (portfolios) in a single transaction,” said David Williamson, Managing Partner of Nova. “Many companies are coming to appreciate the option of selling an entire portfolio rather than having to sell individual assets piecemeal. The routine approach is more costly, distracting to management, destabilising, and fraught with execution risk. We deliver a complete solution to corporate and private sellers for the sale of multiple assets in one single transaction. We have closed several complex transactions in multiple jurisdictions and we see significant opportunities through applying our unique approach in the North American market.”
In September 2012, Nova completed the acquisition of five industrial businesses in the U.S. – all of the operating subsidiaries of Latshaw Enterprises, Inc. – in a single transaction. In August 2011, Nova completed the acquisition of five industrial businesses in Canada.
“I’m looking forward to the challenges and opportunities associated with coming on board at a time when there is an obvious need for Nova’s capability,” said David Jacobs. Some of Jacobs’ previous financial and advisory services to clients include work with MolsonCoors and SABMiller Plc in creating MillerCoors, the sale of Nabisco Holdings to Philip Morris, the sale of Snapple to Cadbury Schweppes and the acquisition of Slim-Fast and Ben & Jerry’s by Unilever.
Jan Kreminski, Nova’s US-based Operating Partner said, “I am delighted to have David join our team in Chicago. His investment banking background and extensive contacts will help to further fuel our growth strategy in North America.”
Kreminski noted that Nova now employs four very seasoned and experienced professionals based in North America to serve the needs of their clients, including Investment Partner Kath Jones and Operating Partner Dennis Powers. “The transatlantic nature of our firm provides us with strong capabilities to serve North American and international clients as well as our portfolio companies who may have assets in multiple geographic locations,” said Kreminski. “Our unique operating model of teaming Operating and Investment Partners together on each transaction helps us evaluate acquisitions across varied industries and geographies, allowing us to partner with management teams to accelerate growth and deliver strong investment returns through genuine value creation. The addition of David Jacobs’ experience will significantly expand our depth and breadth of industry knowledge and experience.”
Nova Capital Management Ltd (“Nova”) the specialist acquirer of corporate and private equity portfolios is pleased to announce that it has 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 a syndicate comprising Nova Capital Management and Caledonia Investments plc (“Caledonia”), an investment company quoted on the London Stock Exchange. GSO Capital Partners (part of the Blackstone Group) and PNC Bank provided the debt financing.
The five acquired businesses have aggregate sales of approximately USD 90 million and employ more than 450 people in 5 operating facilities across the USA.
The businesses acquired are:
- 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;
- 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;
- MC Electronics Inc, specializes in the assembly of custom electronic cables, harnesses, electro-mechanical assemblies and full system integration, based in Hollister, California;
- 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,
- Anderson & Forrester Inc, a manufacturer of orifices, fittings and gauging tools for the natural gas and
propane industries, based in Wheat Ridge, Colorado.
Nova Capital Management Ltd (“Nova”) the specialist acquirer of corporate and private equity portfolios is pleased to announce the expansion of its team with a new Investment Manager.
Luke Matthews joined Nova this week as an Investment Manager, based in London. He will be involved in the identification, review and execution of global portfolio acquisitions. Having previously worked in group development at global business media group UBM plc., and the corporate finance department at KPMG, his expertise will enhance the knowledge base that Nova prides itself in offering its clients. Luke graduated from Pembroke College, Oxford.
Tom Leader, Investment Partner commented: “We completed three portfolio acquisitions in 2011 and our deal momentum is growing in 2012. We are hence delighted to be augmenting our team with Luke’s proven transaction skills. Further, his hands-on corporate experience at UBM makes him a natural fit to our high operational involvement business model. We are sure that Luke will be a valuable addition to our team.”
Nova Capital Management Limited (“Nova”), the specialist acquirer of corporate and private equity portfolios, has announced the sale of its Carbolite business to Verder Group for an undisclosed consideration.
Carbolite was part of a portfolio of six non-core businesses acquired by Nova from Barloworld of South Africa in November 2007. Under Nova’s stewardship, and as a result of Carbolite’s profitable growth since 2007, the gross equity return to Nova’s investors will be around 3.5 times the equity invested in the Carbolite business.
Carbolite, which employs around 160 staff, is the global market leading manufacturer of high temperature ovens and furnaces for industrial process and laboratory testing across a wide range of industrial and research sectors. The company manufactures its products in Derbyshire, UK and sells its products directly in the UK, Germany, France and the US and through a global network of around 100 distributors.
Verder Group is a Dutch family-owned technology company, and, in acquiring Carbolite, is adding a new product group to its laboratory equipment division.
In announcing the sale, Adam Robson, Nova’s Operating Partner and director of Carbolite, said: “During our ownership, Carbolite has benefitted from early investment in both engineering and production capacity and has consolidated its position as market leader in its chosen markets. This has resulted in the excellent result for our investors. “
Nova was advised on the transaction by Lincoln International and Simmons & Simmons LLP.
Nova Capital Management and FF&P Private Equity, the private equity business of Fleming Family & Partners have achieved a return of 3.5 times, over a period of two years, from their investment in EIS Optics, following its sale to NYSE-listed Materion Corporation (symbol: MTRN). The consideration for the sale is not being disclosed.
EIS Optics is an international leader in the manufacture of high volume coated optical components for the projection display and other related markets. FF&P Private Equity, together with Nova Capital, acquired a majority stake in the business in October 2009.
Materion supplies highly engineered advanced enabling materials to leading and dynamic technology companies across the globe.
EIS Optics’ manufacturing base in Shanghai, China is a leading edge manufacturer, with expertise in optical coatings, photo-lithography and high volume, high precision component assembly, and owns significant intellectual property. Following the completion of the transaction, EIS Optics Shanghai will become the major Asian manufacturing base for Materion’s Advanced Material Technologies business.
Commenting on the acquisition, Richard J. Hipple, Chairman, President and Chief Executive Officer of Materion Corporation, said, “We are very pleased to welcome our new associates in Shanghai and continue the transformation of the Materion organization by further broadening our advanced materials technology base and product portfolio. The integration of the EIS Optics manufacturing facility in Shanghai and
its talented and dedicated workforce into Materion provides a promising platform for future growth and immediately widens our geographical reach,
value-added services, and optical materials footprint in fast-growing global markets.”
Patrick Austen, Operating Partner of Nova Capital Management, said: “Following the creation of the stand alone business as EIS Optics in the
autumn of 2009 the management team have successfully developed a more diverse product portfolio now sold on a global basis. The acquisition by Materion with its wealth of knowledge and expertise in materials and optical coatings will enable further new technologies to be developed and exploited in Shanghai thus extending the range of applications.”
Henry Sallitt, Co-head of FF&P Private Equity commented, “The opportunity to invest in this high quality business reflects the strength of the FF&P network. We were introduced to EIS by the Chairman of one of our other investee companies and with the operational expertise of Nova have helped to develop the business to a stage that a sale to a large commercial buyer was a reality. In a challenging exit environment, this investment represents an excellent return to our investors in only just over two years”.
Nova and FF&P were advised on the transaction by Reed Smith LLP
Nova Capital Management Ltd (“Nova”) the specialist acquirer of corporate and private equity portfolios is pleased to announce that it has completed the acquisition of 5 industrial businesses in Canada. The acquired businesses formed the major part of Premetalco Inc., the Canadian subsidiary of Amalgamated Metal Corporation Plc (“AMC”), a UK based industrial group.
The businesses acquired are:
- Wilkinson Steel and Metals, one of Canada’s leading steel services groups;
- Exchanger Industries, a manufacturer of heat exchangers primarily for the oil and gas industries;
- The East and West Canada divisions of National Concrete Accessories, which together represent the country’s leading manufacturer of form hardware and distributor of concrete accessories;
- Debro Chemicals & Pharmaceuticals, a distributor of specialty chemicals.The five acquired businesses have aggregate sales of approximately CAD 400 million and employ more than 720 people in 30 operating facilities across Canada.
The acquisition was made through a newly formed company, Nova Argent Canada Inc. Equity financing for the acquisition was provided by a syndicate comprising Nova and funds advised by HarbourVest Partners, LLC, Morgan Stanley Alternative Investment Partners, Headway Capital Partners LLP, and Parish Capital Advisors LLP. HSBC Bank Canada led a debt syndicate which provided acquisition and working capital facilities.
Following the acquisition, two of Nova’s partners, Dennis Powers (Operating Partner) and Kathryn Jones (Investment Partner) will be relocating to Canada to support the executive management teams of the acquired businesses. Nova’s Canadian operation will be based in Vancouver.
Nova was advised on the acquisition by HSBC Securities (Canada) Inc., Stikeman Elliott LLP, Simmons & Simmons LLP and KPMG LLP. AMC was advised by McGladrey Capital Markets LLC, who initiated the transaction, and by Blake, Cassels and Graydon LLP.
David Williamson, Managing Partner of Nova commented: “We are delighted to have completed this portfolio acquisition. It fits perfectly with our strategy of buying groups of companies which are well managed and have strong market positions but where we feel we can accelerate their growth through the deep operational and international experience which we can bring to bear. We are excited to be establishing a new office in Canada and believe that this will open up other opportunities for us.”
GMT Communications Partners (“GMT”), the European TMTfocused private equity group, is delighted to announce that it has teamed up with management to acquire MeetingZone, the fast-growing independent conferencing and collaboration service provider, for a total consideration of £38.5 million.
MeetingZone generated revenue of £11 million in the financial year ending March 2011. The company has operations in the UK, North America and Germany, and is expected to grow turnover by more than 20% in the current financial year ending March 2012, in line with revenue CAGR of 20% recorded over the last three financial years, and significantly in excess of market growth.
MeetingZone, established in 2002 by Tim Duffy and Steve Gandy, is focused on providing powerful, effective, reliable and intuitive conference call and collaboration solutions to global organisations of all sizes, across all business sectors. The company offers a range of solutions, from fully automated, self-managed reservationless conference calls to high-profile managed event calls for shareholder communications. The company uses “e-business self-service” principles to fully automate its operations, providing better customisation to user requirements and superior levels of service that result in higher margins. MeetingZone has grown to become one of the leaders in its field and its blue-chip client base includes Debenhams, BDO LLP and Taylor Wimpey plc.
Following the deal, GMT will support MeetingZone in continuing its impressive growth, which has seen it included in The Sunday Times Microsoft Tech Track 100 league table of Britain’s fastest growing private technology companies for the last four years. In addition to pursuing growth in existing markets – both through increasing customer numbers and revenue per customer – there are opportunities to extend into new markets in Europe and Asia-Pacific, as well as to expand the service offering. MeetingZone’s market-leading and highly scalable technology platform fits perfectly with GMT’s investment strategy.
The business was acquired from the two founders, Tim Duffy and Steve Gandy, and Nova Capital Management, a leading manager of direct secondary private equity portfolios, which has been invested in the business since 2006, as well as other shareholders. Tim and Steve will sell some of their interests in the business, but remain significant shareholders, Steve will continue in his role as CEO and Tim will become non-executive Chairman.
Stefan Franssen, Partner at GMT, who will join the Board of the Company following the transaction, said:
“Tim and Steve have built a superb business over the past nine years and we look forward to working with this high-calibre team. With the UK and European conferencing markets forecast to grow at around 10% a year to the end of 2013 – driven by the desire of corporates to cut travel and time costs, reduce carbon emissions and cater for increasing numbers of home or remote workers – MeetingZone is ideally positioned to capitalise on its market-leading technology. There is also scope to pursue acquisitive expansion and grow this highly scalable business internationally.”
Tim Duffy, Chairman at MeetingZone, commented:
“We are delighted to have found an investor with the skills and experience required to help us take MeetingZone to the next stage of its growth. GMT’s access to international networks, expertise and support in the coming years will allow us to continue to develop our market-leading technology platform and focus on our commitment to service excellence. We are proud to have been described by Wainhouse Research, the industry analysts, as “probably the best financially managed conference service provider in the world.”
Simon Smith, Investment Partner at Nova Capital Management, commented:
“We are pleased to have worked with and contributed to MeetingZone’s success during the last five years. They are operating in an exciting space and we wish the team and GMT continued success for the next stage of their expansion.”
Weil, Gotshal & Manges provided legal advice to GMT. KPMG and DLA Piper advised Nova and MeetingZone management on the transaction. Bank financing was provided by Clydesdale Bank, a member of the National Australia Bank Group.
The acquisition is GMT’s second of 2011, following the carve-out in April of the legal and tax & accounting businesses of Thomson Reuters, recently renamed Karnov Group, in Denmark and Sweden. The firm has also successfully exited two portfolio investments in the past year – German cable operator PEPcom in August 2010 and German online gaming company, Bigpoint, in April 2011.
Nova Capital Management Limited (“Nova”), the specialist acquirer of corporate and private equity portfolios, has announced the sale of Continuum International Publishing Group Limited (“Continuum”) to Bloomsbury Publishing Plc for a consideration of £20.1 million. In the year to 30th June Continuum is Forecasting EBITA of £0.6million on turnover of £10.7million and had cash of £0.9million.
Continuum formed part of Nova/Paul Investments Capital (SCA) SICAR a fund established by Nova in 2005 to acquire a portfolio of 7 investments from Botts & Co.
Continuum, which is based in London and New York, is an international academic and professional publisher with a small trade list. It has world class academic lists, some of which date back over 170 years and include a number of the most distinguished international authors in the humanities and social sciences, including Karl Barth, Martin Heidegger, Pope Benedict XVI, Archbishop of Canterbury Rowan Williams, Chief Rabbi Jonathan Sacks and Alain Badiou.
Continuum will become the cornerstone of Bloomsbury’s Academic & Professional Division – its leading positions in Continental Philosophy, Education, Theology, Biblical Studies, History, Literary Studies, Linguistics and Politics complement Bloomsbury’s existing academic lists and its clear digital strategy provides the catalyst for further growth in the enlarged group.
Nova was advised on the transaction by Simmons & Simmons LLP and Trillium Partners Limited
Nova Capital Management Limited (“Nova”), the specialist acquirer of corporate and private equity portfolios, has announced the sale of Sterilin Limited to Thermo Fisher Scientific Inc.
Sterilin is the UK’s leading manufacturer and supplier of single use plasticware for clinical and laboratory use in Life Sciences. It supplies a comprehensive range of swabs, petri dishes, pipettes, containers and Iwaki tissue culture products for medical and laboratory use. The company manufactures from a single site in South Wales, UK and sells its products directly and through distributors in the UK and through a global network of distributors.
Sterilin was part of a portfolio of six non-core businesses acquired from Barloworld of South Africa in November 2007.
Thermo Fisher Scientific Inc. is the world leader in serving science.
In announcing the sale, Adam Robson, Nova’s Operating Partner and Chairman of Sterilin, said: “Sterilin has undergone a significant turnaround and is now growing strongly following an extensive investment programme funded by Nova and the Welsh Assembly Government. Sterilin will provide a high value product platform for Thermo Fisher, which will be a good strategic owner, bringing strong manufacturing and commercial resources to build on Sterilin’s competencies. We feel the business will continue to be very successful.”
Nova was advised on the transaction by Travers Smith LLP.
Nova Capital Management Limited (“Nova”), the specialist acquirer of corporate and private equity portfolios, has announced the sale of ABSL Power Solutions Limited (“ABSL”) to EnerSys of the US.
ABSL is a leading provider of custom portable power solutions based on Lithium-ion (“Li-ion”) technology for specialist markets. The company supplies, in particular, the military and space markets. The company is recognised as the leading supplier of portable power solutions to the UK’s Ministry of Defence and is the leading supplier of rechargeable batteries for Low Earth Orbit (“LEO”) satellites in Europe. The company is the only volume manufacturer of Li-ion cells in the UK and one of only three in Europe.
ABSL was part of a portfolio of nine non-core businesses acquired from AEA Technology plc in October 2005 by CIP Industries, which Nova has advised since inception.
EnerSys (NYSE: ENS), headquartered in Reading, Pennsylvania, is the global leader in stored energy solutions for industrial applications.
In announcing the sale, Michael Kelly, Nova’s Operating Partner and Chairman of ABSL, said: “ABSL has grown significantly during the time of Nova’s involvement. The business has undergone a significant turnaround and is now growing strongly. It will provide a high value technology platform for EnerSys and additional access to the UK defence market. EnerSys will be a good strategic owner of ABSL, bringing strong technical and commercial resources to build on ABSL’s competencies. We feel the business will continue to be very successful.”
Nova was advised on the transaction by XMS Capital and Berwin Leighton Paisner LLP.